MRP in an Uncertain World
Leveraging the Power of Software and Data in a Modern MRP System The buildout of the โglobal economyโ over the last three decades assumed - or at least hoped for…
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Supply Chain Planning in a Recession
Even before COVID-19 brought unprecedented disruption to supply chains, business leaders were expecting a recession. In 2019, Bloomberg estimated a 26% chance of a recession for 2020. Now that this…
The painful saga of Sales and Operations Planning (S&OP) software: Part 1
How many SKU’s do you forecast? At what granularity do you run your statistical forecast? Do you track forecast accuracy? Do you set inventory targets? Do you allocate most of…
What Changes Can You Make to Lower Your Inventory Cost?
Inventory is a sensitive issue for any company. Too little, and orders go unfilled. Too much, and precious capital is tied up, affecting equipment purchase plans, reducing cash flow, and…
The Basics of Supply Chain Management Applications
Modern manufacturing operates successfully using software applications across a wide range of functions. These include Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), Manufacturing Execution Systems (MES), and more. Today,…
Operational Definitions
Operational Definitions were a large part of what W. Edwards Deming used to advocate in his teachings. Chapter 9 of his book, Out of the Crisis is dedicated to this concept.…
Tampering: Demand & Inventory Planning
Last week, we posted a blog re-introducing Deming’s concept of tampering. This week we will explore the how tampering creeps into demand and inventory planning. In the case of demand…
Beyond Just Inventory – How Planning Impacts the Entire Company
When people hear the word โplanningโ, many of them immediately make the connection with โinventoryโ. Granted, inventory strategy is a critical part of a companyโs overall health. But planning today…
MRP & Inventory Management
Most companies use Material Requirement Planning (MRP) software, or an MRP module of an ERP, to plan and manage the purchase, production, and transfer orders of finished goods and components…
Capacity Planning: An Industry Guide
What is Capacity Planning? Capacity planning is the process whereby the production capacity needed to meet manufacturing demand is determined. It is essential for scheduling production to meet short- and…