Software For Efficient Managment Of InventoryPeriods of supply, lot for lot, and economic order quantity are supported at the item-location level via mapping of different variables based on item or group characteristics. Also supports supplier-specific and internal transfer lot sizing. Supply variability is measured as reported against the standard lead time. The warehouse inventory management software does not automatically adjust safety stock to buffer the variability. Calculated with the following methods: fill rate/service level, stock-out probability, and table-driven stock-out probability.
A summarized carrying cost value can be applied at the system, item group, item, and item-location levels to determine lot size and cycle stock, which inversely influences safety-stock quantity. Unlimited forecasting models are enabled by Dynamic Linear Modeling methodology centered on Bayesian statistics. Statistical thresholds trigger alerts for review, with the review cycle defined by the user. Factors are item-location specific. Factors are considered include forecast, item cost, ordering cost, carrying cost, opportunities to replenish, minimum quantities, rounding increments, shelf life, and yield. Historical actual deliver times are measured against planned lead time, and lead time uncertainty is calculated and included in calculation of safety stock. Can be set at an item-location level using a range of service-driven strategies. Safety stock dynamically reacts to changes in supplier performance and demand variability. Factors are item-location specific. Factors considered include forecast, item cost, ordering cost, opportunities to replenish, minimum quantities, rounding increments, shelf life, and yield. Three forecast models are used. Demand anomalies are identified by user-defined numbers of standard deviations. Review periods are user-defined. Order quantity, safety stock, and reorder point are computed using the forecast, forecast error, customer service level expectations, lead-times, and user-defined considerations. System can test alternative methods of calculations. Lead-time variability is considered in the calculation of safety stock. Considers forecast, forecast error, service level and lead times in the safety stock calculation. Carrying cost is used in the calculation of safety stock when the Economic Order Quantity calculation is specified. Four forecast models are used. Forecast can be adjusted manually at item-location levels, or they can be updated automatically by the system based on a selected forecasting frequency. The system prompts users when forecasts are not tracking closely to actual demand. Factors considered at the SKU level are forecasts, lead time, safety stock, lot sizes, bracket discounts, order frequency economies, etc. Can build order quantities to 10 different criteria: dollars, reaches, cases, volume, weight, pallets, layers, cubes, dozens, or user-defined. Incorporates item-location lead time and lead-time variability, variance in supply, allocations of product and desired service level. Safety stocks are calculated at the item-location level. Factors considered are user-specified safety-stock strategy, item-location forecast error, lead time and lead-time variance, item pack sizes order frequency, and service level objectives. Carrying costs are used in the developing safety stock requirements and in the aggressiveness of a forward buy. Carrying cost elements include the physical carrying rate, opportunity cost rate, borrowing rate, and ROI. |