SCMDOJO
JULY 29, 2022
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. S = Cost per order.
Supply Chain Shaman
JUNE 23, 2020
I find in my Supply Chains to Admire research that 96% of companies (when compared to their peer groups) are unable to drive improvement while delivering higher performance year-over-year on a balanced scorecard of growth, inventory turns, operating margin and Return on Invested Capital (ROIC). The term “AI” is overused.
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ToolsGroup
MARCH 17, 2020
Gartner research shows that companies that continued to increase earnings while others declined in 2009 and 2010 were those that were able to keep their foot on the gas through the downturn because they had planned responses in advance. The real world rarely follows the rules–the Coronavirus is more evidence of this reality.
Supply Chain Shaman
JUNE 29, 2022
increase in 2010, eleven years ago. In the sector, the bullwhip impact is high, the inflationary pressures of crude oil prices immense, the variability from energy outages painful, and inventories relatively low. If ERP system input includes lead time, why is there such bloat and a problem with inventory restatements?
Supply Chain Shaman
DECEMBER 28, 2020
Only four percent of companies compared to their peer groups improved balance sheet performance of growth, operating margin, and inventory turns. When compared to pre-recession years, we ended the decade with twenty more days of inventory. Days of Inventory Comparison. Now, let’s take consumer products. What can we learn?
Supply Chain Shaman
AUGUST 12, 2020
Total cost analysis is more difficult than it sounds and most technology implementations automated functional measurement systems (manufacturing or procurement), but leave the organization blind on the management of total costs. Mondelez Performance Against the Food Group for 2010-2019. The reason? Figure 1. The reason?
Logistics Viewpoints
MARCH 2, 2023
Freight rates have plummeted, brokerages are struggling, and the industry is still bloated with excess inventory. A famous 2010 HBR article, “Roaring Out of Recession,” studied how 4,700 public companies fared during the recessions of 1980, 1990, and 2000. 17% went bankrupt, went private, or were acquired. Reduced working capital.
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