All Posts Tagged "supply"...
Supply chain and operations management professionals have a love-hate relationship with inventory. In production, there’s nothing worse than getting ready to start a job and discovering that parts are unavailable. Likewise, from a customer service perspective, it’s impossible to fulfill customer demand without the right amount of the right inventory at the right time. People in our profession love having parts and products when we need them, but hate any amount of inventory that ties up company money; takes up space; and causes extra, non-value adding work to handle, store, count, and manage.
March 2012. Advice and Assistance for Manufacturers. Raw materials and parts inventory is maintained at a level that is required to meet the needs of the plant based on the production schedule and adjusted by procurement considerations like lot sizing
Reprinted from Portsmouth Herald / Seacoastonline.com – December 27, 2010
At this time of year, most businesses are working on plans and budgets for the coming new year. Budgeting has to start with a forecast, whether a formal process of projecting sales month-by-month or a very informal “wild guess” approach. In fact, many companies don’t even realize they are making a forecast when they think “next year will be the same as this year,” or perhaps “this year plus a few percent.” That is, in fact, a forecast.
Most businesses experience some form of seasonality — a demand or sales pattern that repeats every year. Sales may be highest in November and December at a particular retail store, and then fall off in January and February.
Advice and Assistance for Manufacturers
A recent AMR/Gartner email newsletter referenced a field study that revealed this interesting tidbit: “51% of companies said the only technology they use for S&OP is Microsoft Office plus Access databases”. That’s not necessarily a bad thing.