Average demand can give you a misleading sense of stability. A product may have an average demand of 30 units per day, but your daily demand could range from 20 to 45 units. If you…
A purchase order is sent on Monday, the goods do not arrive until the following Friday. It is simple to describe this as an eleven day lead time. Knowing what happened during those eleven days…
Pick one common item, like a carton of tea, and picture it sitting on a store shelf. That’s just the last step of its supply chain. Before it gets there, it could have gone through…
Your warehouse contains 120 units on hand. Your customer consumes about 20 units per day. Your vendor takes four days to fulfill your purchase order. The warehouse doesn’t appear to be in trouble, but what…