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What is Economic Order Quantity & its Advantages

SCMDOJO

Economic order quantity is one of the “most commonly used inventory-control techniques”. The objectives and advantages of Economic Order Qty (EOQ) are to minimize inventory carrying costs and ordering costs while simultaneously limiting the probability of stock out to avoid any lost sales or customer loss. Boston: McGraw-Hill, 2009.

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U.S. Freight Logistics Industry Recession Continues with Some Hopeful Signs

Supply Chain Matters

According to the April report commentary , the industry remains hopeful in new signs indicating that retailers and manufacturers are getting closer to working off the overall glut of inventories that resulted in 2022. Further indicated was: “ whether or not we have hit bottom of rates is unclear.” percent drop in cargo volumes.

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Weathering the Next Recession

synchrono

In February of 2009, The Economist even published a piece called The Collapse of Manufacturing. The auto industry, like many other manufacturing sectors, was awash in excess capacity. Understand your true capacity – One of the key principles behind Demand-Driven Manufacturing is the Theory of Constraints (TOC).

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Machine Learning in Supply Chain Planning

Logility

One could argue that Machine Learning could contribute to meeting cost, revenue and customer service goals, but clearly there’s more focus today on basic supply chain planning capabilities like Demand Planning, Inventory Optimization, Sales & Operations Planning, and Supply Planning and Optimization.

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Stories of Supply Chain Leadership: An Interview with Joan Motsinger of Seagate

Supply Chain Shaman

In our work on the Supply Chains to Admire report , we tracked the progress of manufacturing, retailing and distribution companies for the period of 2006 to 2013 and 2009-2013. We then rated companies on their ability to manage and improve a portfolio of metrics: operating margin, inventory turns and Return on Invested Capital (ROIC).

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How the Semiconductor Shortage Could Have Been Averted

QAD

The chip manufacturers began shifting their manufacturing capacity to these other industry sectors who were now begging for supply. Very similar to the crisis in 2008-2009 and much to the surprise of industry analysts, automotive demand came back much quicker than expected. Insufficient inventory visibility throughout the supply chain.

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Key Factors to Consider When Planning and Designing Warehouses

Logistics Bureau

Since I first published this article back in 2009, warehouse design principles haven’t altered that much, but as we received many comments, including requests for more information, I figured it might be a good idea to expand on the original piece. What levels of inventory availability do you require? How fast are your inventory turns?