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Full Description
Remove built-in supply chain weak points to more effectively balance supply and demand Demand-Driven Inventory Optimization and Replenishment shows how companies can support supply chain metrics and business initiatives by removing the weak points built into their inventory systems. Beginning with a thorough examination of Just in Time, Efficient Consumer Response, and Collaborative Forecasting, Planning, and Replenishment, this book walks you through the mathematical shortcuts set up in your management system that prevent you from attaining supply chain excellence. This expanded second edition includes new coverage of inventory performance, business verticals, business initiatives, and metrics, alongside case studies that illustrate how optimized inventory and replenishment delivers results across retail, high-tech, men's clothing, and food sectors.
Inventory optimization allows you to avoid out-of-stock situations without impacting the bottom line with excessive inventory maintenance. By keeping just the right amount of inventory on hand, your company is better able to meet demand without sacrificing the cost-effectiveness of other supply chain strategies. The trick, however, is determining "just the right amount"—and this book provides the background and practical guidance you need to do just that.
Examine the major supply chain strategies of the last 30 years
Remove the shortcuts that prohibit supply chain excellence
Optimize your supply/demand balance in any vertical
Overcome systemic weaknesses to strengthen the bottom line
Inventory optimization is benefitting companies around the world, as exemplified here by case studies involving Matas, PWT, Wistron, and Amway. When inefficiencies are built into the system, it's only smart business to identify and remove them—and implement a new streamlined process that runs like a well-oiled machine. Demand-Driven Inventory Optimization and Replenishment is an essential resource for exceptional supply chain management.
Contents
Preface xi
Acknowledgments xiii
About the Author xv
Chapter 1 Creating Demand-Driven Supply 1
Chapter 2 Achieving Timely and Accurate Responses to Customer Demand 19
Chapter 3 Just-in-Time and Enterprise Resource Planning Rise Together 43
Chapter 4 How Does Days of Supply Wreak Havoc on the Supply Chain? 67
Chapter 5 What Will You Accomplish with Inventory Optimization? 87
Chapter 6 Shifting the Focus from an Algorithm Discussion to a Business Discussion 109
Chapter 7 Fitting Unlimited Optimization into a Constraining World 139
Chapter 8 Reviewing the Three Proof of Value Engagements 159
Chapter 9 Inventory Optimization in the Real World: Matas A/S 193
Chapter 10 The Strategic Value Assessment 217
Chapter 11 A View of an Inventory Optimization Installation 233
Chapter 12 Inventory Optimization in Supply Chain Verticals 253
Chapter 13 Pulling It All Together 275
Epilogue 291
Index 295
