New Tool For Inventory Management:C

New Tool For Inventory Management:
Component Safety Stock Reduction
A top priority for inventory managers is the control and reduction of safety stock. However, determining
just what that correct level and investment is, especially for component or raw materials, remains
a challenge for many. That is, until now.
Taking a lesson from determining finished goods safety stock. John A. Estep, CFPIM, president,
E/Step Software Inc. (Tieton, Wash.; www.EstepSoftware.com) believes the solution lies in considering
the approach used for finished goods. It involves calculating each item’s safety stock individually using
the item’s service target, forecast error, error distribution, lead time and replenishment frequency. “Only
then will the safety stock achieve the service goal for each item,” he explains.
In this exclusive to IRR, Estep notes that while many companies have learned this lesson for finished
goods, they fall back on old habits when it comes to setting component or raw material safety stock.
They return to a fixed time supply and set the safety stock for all items at an artificial two weeks, or two
months supply.
The question of the error factor. “The problem is that the error at the component level is not
known, while it is at the finished goods level,” asserts Estep, who develops finished goods/service parts
forecasting and inventory planning software. While there may be independent demand for some components,
and this demand has its own error, it applies only to the independent demand for the component,
not to the dependent demand from its parents, he explains. “With no error available for dependent
demand at the component levels, companies often resort to using a fixed time supply to establish component
safety stocks,” he maintains. “This is the worst possible solution because it results in both high
inventory and low service.”
Creating dependent error for any component at any level of the bill of materials. Estep, after
much investigation at several diverse companies, has devised a methodology to create a dependent error
for any component.
“Think of it as similar to a bill of materials explosion,” he offers. “There you compute dependent
demand for any component which represents the accumulated demand from its parents, all their parents,
and so on.” What is done is to translate the error from each finished goods part down through the bill to
all of its components, all
their components, and so on

ผลลัพธ์ (อังกฤษ) 2:

New Tool For Inventory Management:
Safety Stock Reduction Component
A is the top Priority for Inventory Control Managers and Reduction of safety Stock. However, determining
just what is that correct level and Investment, especially for RAW or Component Materials, remains
a Challenge for many. That is, until now.
Taking a lesson from determining Finished Goods Stock safety. John A. Estep, CFPIM, President,
E / Step Software Inc. (Tieton, Wash .; Www.EstepSoftware.com) believes the Solution Lies in considering
the approach used for Finished Goods. Involves calculating each item's safety Stock individually using
the item's Service Target, forecast Error, Error Distribution, Lead time and replenishment frequency. "Only
then Will the safety Stock Achieve the Service Goal for each item, "He Explains.
In this Exclusive to IRR, Estep Notes that while many companies have learned this lesson for Finished
Goods, they Fall Back on Old habits when it comes to Setting. RAW Material or Component Stock safety.
They Return to a fixed time and Supply SET Stock for all the safety items at an artificial Two weeks, or Two
months Supply.
The question of the Error factor. "The Problem is that the Error at the Component level is not
Known, while it is at the Finished Goods level, "asserts Estep, Who develops Finished Goods / Service Parts
Inventory forecasting and planning Software. While May there be demand for Independent Some components,
and this demand has its own Error, it Applies only to the demand for the Independent Component,
not dependent to the demand from its parents, He Explains. "With no Error available for dependent
demand at the Component levels, companies often Resort to using a fixed time Component Supply to establish
safety stocks, "He maintains. "This is the worst possible Solution because it results in both High
and low Inventory Service. "
Creating dependent Error Component at any level for any of the Bill of Materials. Estep, after
much Investigation at several diverse companies, has devised a methodology to create a dependent Error
for any Component.
"Think of it as similar to a Bill of Materials Explosion," He offers. "There You Compute dependent
demand for any Component which represents the accumulated demand from its parents, all their parents,
and so on. "What is done is to Translate the Error from each Finished Goods Part down Through the Bill to
all of its components,. all
their components, and so on.