article thumbnail

Why probabilistic forecasting is better for inventory optimization

ToolsGroup

Last month we published a primer on probabilistic forecasting , an alternative to deterministic or ‘single number’ forecasting. To understand the relationship between probabilistic forecasting and inventory, view your supply chain as a dynamic system, subject to uncertainty and unpredictable change.

article thumbnail

Avoid “Lost in Translation”. Monetize S&OP to Include Finance.

ToolsGroup

Gartner recommends multiplying the planned unit volume: by price to generate monetized revenue plans, by cost to generate monetized inventory plans, by margin to generate monetized profit plans. 4-9% decrease in the value of obsolete inventory as a percentage of total stocked goods (product costs).

S&OP 92
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

The Value of Logistics and Supply Chain Education!

Supply Chain Game Changer

But it’s not as easy as, say, cutting inventory costs. Many academics have found that online seminars focus on math problems. For example, making an Excel spreadsheet with a demand forecast, are very popular. COVID-19 could change that. Inclusion and Diversity.

article thumbnail

Start-Up Chile Helps Kick-Start Anderson Entrepreneurs - UCLA.

The UCLA Anderson Global Supply Chain Blog

UCLA Anderson Forecast. Eric Kriegstein (12) won seed funding for a company called SeatUp, a mobile-auction platform that enabled airlines to auction off premium seats and unused inventory in the final hours before a flight takes off. UCLA Anderson Hosts Steinbeck Family Business Seminar. Wall Street Journal. The Times Of India.

Chile 74
article thumbnail

RELEX Shares Vision for Unified Retail Planning at its 5th Annual UK Space & Supply Chain Forum

RELEX Solutions

After a welcome introduction by Ms Luostarinen, RELEX Group CEO Mikko Kärkkäinen kicked off the main seminar by providing a quick overview of RELEX’s progress to date. John’s presentation outlined how RELEX has helped Wyevale to significantly improve forecasting, availability and achieve vastly reduced working capital.

article thumbnail

26 warehouse pros reveal the most important factors to consider when moving to an automated warehouse

6 River Systems

Warehousing effectiveness depends upon the accuracy of the physical inventory in the warehouse with the respect to the inventory indicated in the computer system. This discrepancy between the physical and electronic inventories is dependent on the reliability of the warehouse processes.

article thumbnail

Managing the Long Tail of the Supply Chain Part 4: Five Takeaways

ToolsGroup

service levels with 20% inventory reductions. When demand is variable and intermittent, classic forecasting and inventory models do not perform well – many consider items with very low demand rates “unforecastable.” This fourth and final post will summarize five key takeaways in dealing with the long tail: 1.