The Eastern European/Central Asian market has a number of unique qualities. Out here, the success of Western companies seems so distant from our reality that it is simply not perceived as an argument in favor of change. Western markets are more mature, according to this line of thought, and therefore more stable, predictable, and easy … Read more
Our clients across the globe have claimed that average lead time from their overseas suppliers increased by 30% and order fulfillment rate decreased by 6% compared to 2019.
Even without demand variability, production schedules cannot be executed. Any planner with shop floor experience knows that demand variability is not the only source of distortion. Suppliers, employees, and equipment can also let you down. Usually, this type of variation is known as operational variability. Below is a chart that shows the BOM and Routings … Read more
Before MRP, the most popular approach to inventory management was Order Point, where each point is independent. Yet the more complex an operational environment becomes — thanks to a broader SKU list or changes to assortment and demand — the more likely you are to see bimodal inventory distribution, when too little of the right … Read more
The Origins of Order Point What was inventory management like before MRP? Before MRP was introduced, the most popular inventory management approach was called Order Point. The main limitations were within companies — that is, the market often wanted more than a company could build. Everything that was produced could and would be sold. Therefore, … Read more
