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#1663 From: Mark RONGE <mark.ronge@...>
Date: Sun Jul 1, 2007 7:21 pm
Subject: Re: Re: help for inventory solution
mark.ronge
Send Email Send Email
 
Hi Gerrolyn,
 
I haven't found (yet) what I am looking for, (but then it is rather specific and I depend on the goodwill of mainly one company or other people who have had contact with that company).
 
I am not in Singapore, unfortunately, (I've traveled there many times and enjoyed it), but took a yahoo.com.sg as there isn't any for my current country.
 
If you have hundreds of items then I believe that POM is too small for you.  However, POM may give you some ideas and since you work in an IT company you should find plenty of help to get something nice done in excel.  It is really a great product.  Success!
 
All the best,
 
Mark


"gerrolyn.wood" <gerrolyn.wood@...> wrote:
Have you found the inventory solution you were seeking back in May? I
f not, I would like to speak with you.

--- In Distribution_Inventory_Control@yahoogroups.com, "henry_l_lyu"
<henry_l_lyu@...> wrote:
>
> Hi:
>
> I am a rookie for an IT department. And it is one of my duty to keep
> inventory clear and effective. Now I am looking for any inventory
> solution for hundreds of IT related parts. Appreciate any suggestion
or
> source I shall look at. I work for a company about 200+ users with
> LAN.
>



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#1664 From: "happyolly" <oraustin@...>
Date: Thu Aug 2, 2007 10:55 am
Subject: UoM - base/master UoM
happyolly
Send Email Send Email
 
Hi, comments appreciated please
I deal with database of aircraft parts.
Currently we have customer and supplier UoMs set up and qty of stock
can only be expressed as an integer.
We don't really have a concept of "our" part or UoM.
Should I create one?
Should I try to convert to a "base" UoM that is the smallest
denomination?
Can I get away with the existing integer (non-decimal) quantity of
stock by doing that?

Any ideas on where I could source info that discusses this particuar
subject in detail?

Thanks in advance

#1665 From: "Dave Piasecki" <dave@...>
Date: Thu Aug 2, 2007 2:37 pm
Subject: RE: UoM - base/master UoM
inventoryops
Send Email Send Email
 

I’m not sure exactly what you are asking here, but if you can only express U/M as an integer, you really have no choice but to use the smallest U/M as your system U/M. From that, you may be able to “fake” other U/Ms on documents and reports (such as Purchase orders or customer orders) or even on inquiry screens.  

However, if you want to properly use multiple U/Ms, you would need to be able to track portions of U/Ms (therefore you would need the ability track decimal places). Most mainstream inventory systems should be able to do this.

Whatever you choose to do, make sure you carefully consider the implications of using multiple units of measure. The biggest issue being that multiple U/Ms tend to create confusion and subsequently errors (big errors). So if you do use them, you need to make sure you work through the processes that would be impacted and that all involved are properly trained. You will probably also want to look into ways of quickly identifying errors that may result from U/M confusion (exception reports are useful for this type of monitoring).  

 

             Dave Piasecki


From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf Of happyolly
Sent: Thursday, August 02, 2007 5:56 AM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] UoM - base/master UoM

 

Hi, comments appreciated please
I deal with database of aircraft parts.
Currently we have customer and supplier UoMs set up and qty of stock
can only be expressed as an integer.
We don't really have a concept of "our" part or UoM.
Should I create one?
Should I try to convert to a "base" UoM that is the smallest
denomination?
Can I get away with the existing integer (non-decimal) quantity of
stock by doing that?

Any ideas on where I could source info that discusses this particuar
subject in detail?

Thanks in advance


#1666 From: "happyolly" <oraustin@...>
Date: Thu Aug 2, 2007 3:57 pm
Subject: Re: UoM - base/master UoM
happyolly
Send Email Send Email
 
Hi, thanks for reply.
We have our own home grown system that i'm trying to keep alive.
Changing quantities to decimals is probably more difficult than
implementing the idea of a master lowest denominator unit but I can
imagine whatever I devise there'll be an exception to it.

We buy and sell in diff UoMs it's unavoidable.  Very very aware of
pitfalls which is why one of my tasks is to fix it.  We still have
25 cartons of blue velcro we can't sell :)
Just wondered if the concept of a master part and lowest common
denominator UoM has benefit if I can handle decimals?

How do I deal with the situation where we buy in rolls but
distribute in metres (fractions fo a roll) the material, hydraulic
hose can not be joined and therfore. 0.4 (4 metres)of a roll and 0.6
of roll does not equate to a full roll or 10 metres....!!

Thanks

--- In Distribution_Inventory_Control@yahoogroups.com, "Dave
Piasecki" <dave@...> wrote:
>
> I'm not sure exactly what you are asking here, but if you can only
express
> U/M as an integer, you really have no choice but to use the
smallest U/M as
> your system U/M. From that, you may be able to "fake" other U/Ms on
> documents and reports (such as Purchase orders or customer orders)
or even
> on inquiry screens.
>
> However, if you want to properly use multiple U/Ms, you would need
to be
> able to track portions of U/Ms (therefore you would need the
ability track
> decimal places). Most mainstream inventory systems should be able
to do
> this.
>
> Whatever you choose to do, make sure you carefully consider the
implications
> of using multiple units of measure. The biggest issue being that
multiple
> U/Ms tend to create confusion and subsequently errors (big
errors). So if
> you do use them, you need to make sure you work through the
processes that
> would be impacted and that all involved are properly trained. You
will
> probably also want to look into ways of quickly identifying errors
that may
> result from U/M confusion (exception reports are useful for this
type of
> monitoring).
>
>
>
>              Dave Piasecki
>  <http://www.inventoryops.com>
>
>   _____
>
> From: Distribution_Inventory_Control@yahoogroups.com
> [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf
Of
> happyolly
> Sent: Thursday, August 02, 2007 5:56 AM
> To: Distribution_Inventory_Control@yahoogroups.com
> Subject: [Distribution_Inventory_Control] UoM - base/master UoM
>
>
>
> Hi, comments appreciated please
> I deal with database of aircraft parts.
> Currently we have customer and supplier UoMs set up and qty of
stock
> can only be expressed as an integer.
> We don't really have a concept of "our" part or UoM.
> Should I create one?
> Should I try to convert to a "base" UoM that is the smallest
> denomination?
> Can I get away with the existing integer (non-decimal) quantity of
> stock by doing that?
>
> Any ideas on where I could source info that discusses this
particuar
> subject in detail?
>
> Thanks in advance
>

#1667 From: "Dave Piasecki" <dave@...>
Date: Fri Aug 3, 2007 2:19 pm
Subject: RE: Re: UoM - base/master UoM
inventoryops
Send Email Send Email
 

As to the “fractions of a roll” issue, I have run into this a few times and there is no nice solution to this. If it’s just a handful of items, you may have to just manage this manually by aggressively scrapping remnants (reducing on-hand inventory) under a specific length to avoid the situation you described. A more automated means of handling this could be to use lot tracking and assign each roll a lot. Then set your system to not mix lots on sales orders for order quantities less than a full roll quantity. Since you should only have one remnant per roll (and therefore one remnant per lot), your system should then be able to “know” not to sell multiple remnants as a single length. But you would need to allow mixed lots for orders greater than one full roll. Lot tracking creates it’s own set of problems and requirements though, so this solution is potentially more troublesome than a manual process.

 

             Dave Piasecki


From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf Of happyolly
Sent: Thursday, August 02, 2007 10:57 AM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] Re: UoM - base/master UoM

 

Hi, thanks for reply.
We have our own home grown system that i'm trying to keep alive.
Changing quantities to decimals is probably more difficult than
implementing the idea of a master lowest denominator unit but I can
imagine whatever I devise there'll be an exception to it.

We buy and sell in diff UoMs it's unavoidable. Very very aware of
pitfalls which is why one of my tasks is to fix it. We still have
25 cartons of blue velcro we can't sell :)
Just wondered if the concept of a master part and lowest common
denominator UoM has benefit if I can handle decimals?

How do I deal with the situation where we buy in rolls but
distribute in metres (fractions fo a roll) the material, hydraulic
hose can not be joined and therfore. 0.4 (4 metres)of a roll and 0.6
of roll does not equate to a full roll or 10 metres....!!

Thanks

--- In Distribution_Inventory_Control@yahoogroups.com, "Dave
Piasecki" <dave@...> wrote:
>
> I'm not sure exactly what you are asking here, but if you can only
express
> U/M as an integer, you really have no choice but to use the
smallest U/M as
> your system U/M. From that, you may be able to "fake" other U/Ms on
> documents and reports (such as Purchase orders or customer orders)
or even
> on inquiry screens.
>
> However, if you want to properly use multiple U/Ms, you would need
to be
> able to track portions of U/Ms (therefore you would need the
ability track
> decimal places). Most mainstream inventory systems should be able
to do
> this.
>
> Whatever you choose to do, make sure you carefully consider the
implications
> of using multiple units of measure. The biggest issue being that
multiple
> U/Ms tend to create confusion and subsequently errors (big
errors). So if
> you do use them, you need to make sure you work through the
processes that
> would be impacted and that all involved are properly trained. You
will
> probably also want to look into ways of quickly identifying errors
that may
> result from U/M confusion (exception reports are useful for this
type of
> monitoring).
>
>
>
> Dave Piasecki
> <http://www.inventoryops.com>
>
> _____
>
> From: Distribution_Inventory_Control@yahoogroups.com
> [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf
Of
> happyolly
> Sent: Thursday, August 02, 2007 5:56 AM
> To: Distribution_Inventory_Control@yahoogroups.com
> Subject: [Distribution_Inventory_Control] UoM - base/master UoM
>
>
>
> Hi, comments appreciated please
> I deal with database of aircraft parts.
> Currently we have customer and supplier UoMs set up and qty of
stock
> can only be expressed as an integer.
> We don't really have a concept of "our" part or UoM.
> Should I create one?
> Should I try to convert to a "base" UoM that is the smallest
> denomination?
> Can I get away with the existing integer (non-decimal) quantity of
> stock by doing that?
>
> Any ideas on where I could source info that discusses this
particuar
> subject in detail?
>
> Thanks in advance
>


#1668 From: Dave Strebe <dstrebe@...>
Date: Sat Aug 4, 2007 9:00 am
Subject: Re: UoM - base/master UoM
d_strebe
Send Email Send Email
 
If your system will handle it, buy by the 'roll' and sell by the foot

Dave

#1669 From: "happyolly" <oraustin@...>
Date: Sat Aug 4, 2007 10:59 am
Subject: Re: UoM - base/master UoM
happyolly
Send Email Send Email
 
--- In Distribution_Inventory_Control@yahoogroups.com, Dave Strebe
<dstrebe@...> wrote:
>
> If your system will handle it, buy by the 'roll' and sell by the foot
>
> Dave
>
eeeeerrrrrr....what? afraid that's not overly helpful sorry

#1670 From: "Ihwan Idamin" <ichwan@...>
Date: Sat Aug 4, 2007 3:55 am
Subject: VMI (Vendor Management Inventory)
ihwanidamin
Send Email Send Email
 
Dear all,
I will try to doing a business process mapping for VMI at our company. I would be glad to know if you have a template to do a mapping for a VMI process for an distributions such as implementing chalenges, addressing concerns and how is the VMI approach in the Supply Chain?
 
Cheers,
ihwan

#1671 From: "d_strebe" <dstrebe@...>
Date: Mon Aug 6, 2007 2:40 am
Subject: Re: UoM - base/master UoM
d_strebe
Send Email Send Email
 
--- In Distribution_Inventory_Control@yahoogroups.com, "happyolly"
<oraustin@...> wrote:
>
> --- In Distribution_Inventory_Control@yahoogroups.com, Dave Strebe
> <dstrebe@> wrote:
> >
> > If your system will handle it, buy by the 'roll' and sell by the foot
> >
> > Dave
> >
> eeeeerrrrrr....what? afraid that's not overly helpful sorry
>
Sorry my apologies didn't mean to be obtuse,
so why can't you set the issue unit of measurement
for the hose to a 'centimeter' or a 1/3 of a meter (foot) or what ever
handling unit you want to sell it at that works best for your business
just make sure all the hose is sold the same way. If your system can
handle it buy the hose by the roll (ie.1 roll is 500') have your
system convert it to the issue unit and receive it into your stock at
the corrected HU for sale (ie. 6000" if you want to sell by the inch)
or whatever measurements you want to use. or have I completely
misunderstood the problem?

Dave

#1672 From: yu yaling <yaling_yu@...>
Date: Mon Aug 6, 2007 6:29 am
Subject: how to calculate the EOQ and achieve high inventory turn?
yaling_yu
Send Email Send Email
 
Hello,
I am working in a company business with fasteners.
There are always thousands of fasteners every month
for our business transactions.
How can we know the best EOQ? I know its related with
suppliers MOQ,customers history usage, forecast,the
items leadtime and the ship mode etc. It is really
very complicated that how can I get the EOQ. Currently
we are facing some items overbuild stock while some
facing urgency from customer's side. How about the
inventory turn in the this field?

Any good examples to share with me? Or any new ways of
calculation of the EOQ?

Appreciated your reply!

Ling




       ___________________________________________________________
ΗΐΧ’ΡΕ»’Γβ·ΡΣΚΟδ3.5GΘέΑΏ£¬20MΈ½Όώ£‘
http://cn.mail.yahoo.com

#1673 From: Gerri Wood <gerrolyn.wood@...>
Date: Mon Aug 6, 2007 2:15 pm
Subject: Re: how to calculate the EOQ and achieve high inventory turn?
gerrolyn.wood
Send Email Send Email
 
Hello Ling.  Go to www.beltechgroup.com.  You will be able to achieve a higher inventory turn with this solution along with many other modules to assist in daily operations.
Gerrolyn

yu yaling <yaling_yu@...> wrote:
Hello,
I am working in a company business with fasteners.
There are always thousands of fasteners every month
for our business transactions.
How can we know the best EOQ? I know its related with
suppliers MOQ,customers history usage, forecast,the
items leadtime and the ship mode etc. It is really
very complicated that how can I get the EOQ. Currently
we are facing some items overbuild stock while some
facing urgency from customer's side. How about the
inventory turn in the this field?

Any good examples to share with me? Or any new ways of
calculation of the EOQ?

Appreciated your reply!

Ling

__________________________________________________________
ΗΐΧ’ΡΕ»’Γβ·ΡΣΚΟδ3.5GΘέΑΏ£¬20MΈ½Όώ£‘
http://cn.mail.yahoo.com


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#1674 From: "scott" <HOTSCOTT4962@...>
Date: Tue Aug 14, 2007 2:55 pm
Subject: newbie needs advice
wijtfinder
Send Email Send Email
 
Hi; I'm glad I found this forum.  The inventory sysytem used here is
SBT Pro, 5.0.  This is a small electronics manufacturer with inventory
accuracy and tracking issues.  My role, as a consultant, is to
determine if inventory is being 'lost', and if purchasing order volume
matchs end products sold.  The current system is unable to follow a
part from purchase to end products sold, due to how the system was set
up.
Any comments on the reliability of SBT in general and any ideas of how
you would approach this project?
Thanks for whatever advice you can give me.

wijtfinder

#1675 From: Gerri Wood <gerrolyn.wood@...>
Date: Tue Aug 14, 2007 3:45 pm
Subject: Re: newbie needs advice
gerrolyn.wood
Send Email Send Email
 
Hi Scott,
 
If the current system you are using is not giving you the results you need, you should check out another physical asset system software called BMA.  Its very affordable and will resolve these pains you are experiencing.  The website is www.gotobma.com.
Gerri

scott <HOTSCOTT4962@...> wrote:
Hi; I'm glad I found this forum. The inventory sysytem used here is
SBT Pro, 5.0. This is a small electronics manufacturer with inventory
accuracy and tracking issues. My role, as a consultant, is to
determine if inventory is being 'lost', and if purchasing order volume
matchs end products sold. The current system is unable to follow a
part from purchase to end products sold, due to how the system was set
up.
Any comments on the reliability of SBT in general and any ideas of how
you would approach this project?
Thanks for whatever advice you can give me.

wijtfinder



Yahoo! oneSearch: Finally, mobile search that gives answers, not web links.


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#1676 From: "bresliev" <bresliev@...>
Date: Mon Aug 20, 2007 11:41 am
Subject: physical inventory control
bresliev
Send Email Send Email
 
Hi,

Well, I was assigned a task to develop automated data collection
system for inventory control. If anyone can give me directions where
I can find good information how that system should work will be very
helpful for me...


Thanks

#1677 From: Gerri Wood <gerrolyn.wood@...>
Date: Mon Aug 20, 2007 3:18 pm
Subject: Re: physical inventory control
gerrolyn.wood
Send Email Send Email
 
Very affordable physical asset management solutions with www.beltechgroup.com
Virtual demo of software is also provided.  Let me know if you would like demo and pricing.

bresliev <bresliev@...> wrote:
Hi,

Well, I was assigned a task to develop automated data collection
system for inventory control. If anyone can give me directions where
I can find good information how that system should work will be very
helpful for me...

Thanks



Need a vacation? Get great deals to amazing places on Yahoo! Travel.

#1678 From: "curph01" <curph01@...>
Date: Tue Aug 21, 2007 3:33 pm
Subject: Re: physical inventory control
curph01
Send Email Send Email
 
The following sites are good resources

    www.inventoryops.com
    logistics.about.com
    www.apics.org
    www.idii.com

If you're planning to roll your own in Access there is a db schema here.
    http://office.microsoft.com/en-us/templates/TC010184581033.aspx

For commercial offerings google the following:
    Warehouse Management System
    inventory software

Phil Curnan
www.wildmousesoftware.com

--- In Distribution_Inventory_Control@yahoogroups.com, "bresliev"
<bresliev@...> wrote:
>
> Hi,
>
> Well, I was assigned a task to develop automated data collection
> system for inventory control. If anyone can give me directions where
> I can find good information how that system should work will be very
> helpful for me...
>
>
> Thanks
>

#1679 From: "dselgen" <dselgen@...>
Date: Thu Sep 6, 2007 5:24 pm
Subject: Defining minimum/maximum stock quantities
dselgen
Send Email Send Email
 
New to this forum so apologies if this has been covered. Some of my
branch managers use min/max as the amount of product they WANT to
stock of a certain product; some use min/max as the amount of product
they can PHYSICALLY store in a location.  I've been asked to come up
with a definition that we all agree upon.  Looking for pros/cons of
using either definition. Thank you.

#1680 From: Cindy Graves <ldcjgraves@...>
Date: Thu Sep 6, 2007 7:39 pm
Subject: Re: Defining minimum/maximum stock quantities
ldcjgraves
Send Email Send Email
 
We are a small educational maintenance dept. and we use Max for the amount we CAN/SHOULD store, and Min to trigger a reorder point....how many before we reorder.....
 
Kind of a combination of both....and interesting concept, but for sure everyone should be sure it means the same thing!
 
CGraves
Accountant
Facilities Management

dselgen <dselgen@...> wrote:
New to this forum so apologies if this has been covered. Some of my
branch managers use min/max as the amount of product they WANT to
stock of a certain product; some use min/max as the amount of product
they can PHYSICALLY store in a location. I've been asked to come up
with a definition that we all agree upon. Looking for pros/cons of
using either definition. Thank you.



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#1681 From: "mike563965" <mike.balaban@...>
Date: Fri Sep 7, 2007 10:33 am
Subject: Re: Defining minimum/maximum stock quantities
mike563965
Send Email Send Email
 
--- In Distribution_Inventory_Control@yahoogroups.com, "dselgen"
<dselgen@...> wrote:
>
> New to this forum so apologies if this has been covered. Some of
my
> branch managers use min/max as the amount of product they WANT to
> stock of a certain product; some use min/max as the amount of
product
> they can PHYSICALLY store in a location.  I've been asked to come
up
> with a definition that we all agree upon.  Looking for pros/cons
of
> using either definition. Thank you.
>

Could we have a little more information? If you have a stockroom
plus
a display area than this will affect how you want to order more
product. If it is for just a stock location, then you should go for
max storage not what each individual wants. Maximise your storage
space and then have a low trigger quantity for reorder. Base this
reorder quantity on how long the product takes to come in, vs how
many
you use in that waiting period. That will hopefully stop you from
running out
of any products. I hope this makes sense, if not, mail me to clarify
any points.

Mike B.

#1682 From: "curph01" <curph01@...>
Date: Fri Sep 7, 2007 12:28 pm
Subject: Re: Defining minimum/maximum stock quantities
curph01
Send Email Send Email
 
--- In Distribution_Inventory_Control@yahoogroups.com, "dselgen"
<dselgen@...> wrote:
>
> New to this forum so apologies if this has been covered. Some of my
> branch managers use min/max as the amount of product they WANT to
> stock of a certain product; some use min/max as the amount of product
> they can PHYSICALLY store in a location.  I've been asked to come up
> with a definition that we all agree upon.  Looking for pros/cons of
> using either definition. Thank you.
>

Using your parts inventory record to store information about your
physical plant is counter to common practices.

Typically you store the overall min / max (ie. the amount of product
they want) with the part inventory record and the limits of different
storage locations in a separate table. The min / max is typically used
to control purchasing as in when to trigger a PO and calculating the
amount to order. The max is based on price breaks, previous usage and
other various factors including in your case the physical limitations.
To use it for physical capacity alone reduces its  functionality.

Put the physical capacity limitations in a separate table and have
your software take it into account when issuing purchase orders. If
you centralize purchases then use it to calculate when to issue stock
to the branch.

Phil Curnan
WildMouseSoftware.com

#1683 From: "rob" <rob.collins@...>
Date: Fri Sep 7, 2007 1:04 pm
Subject: max min
r3sons123
Send Email Send Email
 
Hey,

     Min / Max isn't a simple determination in my eyes.  Yes the basic
premise is: max represents the most inventory you want to maintain
and min represents the minimum accepted inventory level.

     There are several factors that need to be analyzed to arrive at
these numbers.

     Without discussing how to determine them, I will list some of
them.

     * Sales Analysis.  How many do you sell?
     * How often do you re-order inventory?
     * How long does it take for the supplier to process the purchase
order and ship?  Transit time for the shipment? (overnight ups,
overseas container, etc).
     * Cost of shipping as a percentage of the product.  Shipping can
be a hidden or sometimes overlooked expense of a company.  Thus
infrequent large orders or cheapest shipping methods, (ground service-
commercial standard).
     * How much room available to store the product.
     * does the product have a life span?  Perishable?
     * Does the product require special handling in heat or cold
weather that would limit summer or winter shipments.  Or increase the
shipping cost if a shipment were to occur in a season that doesn't
work well withthe product.
     * Financial burden of tying up money for inventory.  In a world
of "just in time"  there is no reason for companies, distributors,
warehouse, etc to maintain 90 days, 180 days of inventory any more.
     * Demand = is it seasonal, trend based, is the product compliment
another product.  Is sales dependant on a main products  sales? If
so, analysis of the main product, market, trend, etc needs to be
factored as well.
     * Does the product require repackaging, relabeling, sorting,
adjustments, etc prior to being able to sell.
     * How often do you want to rotate inventory annually?
     * Pricing structure of the product.  Price breaks, shipping
discounts, etc.


     If your not sure of some of these factors base your minimum
high.  You could also introduce a third value to the max/min theory.
A re order point.

     For instance.  A product that sells 100 permonth, takes two weeks
from purchase to arrival, purchased once a month, space can
accomadate plenty considering the item is small. Requires no
repackaging of any sort upon arrival.  Can ship by courier ground
service.  Shipping is relativiely inexpensive considering it is small
and accessible withinnorth america.  The product does not show a
seasonal trend, consistant sales, does not have another product that
it compliments.  Sales analysis shows 15% + growth over each year.

     I would maintain a max of 140 with a minimum of 40 and a reorder
point of 60.  Essentially 50 sell every two weeks.  day one 140 in
stock.  two weeks later 90 in stock.  two more weeks go by, 50 more
have been sold by this time.  40 in stock. At week three the order
went in for 80 (140-60). By end of week four, start of week five the
order arrives.

     Hope this helps.

Rob

----- Original Message -----
From: Cindy Graves
To: Distribution_Inventory_Control@yahoogroups.com
Sent: Thursday, September 06, 2007 2:39 PM
Subject: Re: [Distribution_Inventory_Control] Defining
minimum/maximum stock quantities



We are a small educational maintenance dept. and we use Max for the
amount we CAN/SHOULD store, and Min to trigger a reorder point....how
many before we reorder.....

Kind of a combination of both....and interesting concept, but for
sure everyone should be sure it means the same thing!

CGraves
Accountant
Facilities Management

dselgen <dselgen@...> wrote:
New to this forum so apologies if this has been covered. Some of my
branch managers use min/max as the amount of product they WANT to
stock of a certain product; some use min/max as the amount of product
they can PHYSICALLY store in a location. I've been asked to come up
with a definition that we all agree upon. Looking for pros/cons of
using either definition. Thank you.






----------------------------------------------------------------------
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#1684 From: "Dave Piasecki" <dave@...>
Date: Fri Sep 7, 2007 3:11 pm
Subject: RE: Defining minimum/maximum stock quantities
inventoryops
Send Email Send Email
 

Min/max is really just a slight variation of Fixed Reorder Point (your min, basically calculated as lead-time demand plus safety stock) and Fixed Replenishment Quantity (Your max minus your min). What it sounds like you are really asking is how to determine your order quantities. This is primarily a cost decision that also takes into account operational restraints. You should start with an Economic Order Quantity or similar calculation that takes into account order costs, holding costs, and price breaks. Then work with this within the overall space and inventory investment restraints for your organization. You obviously can’t order more than you can afford to pay for or more than you can physically store.

However, when I mention working within your physical storage restraint, that doesn’t mean that the warehouse decides your order quantity based upon the slot they set up for the product. The reverse is more likely since the warehouse should try to slot based upon your ordering patterns. However, if your warehouse is bursting at the seams, you need to adjust your order quantities or look for other storage alternatives. There is some cooperation that needs to occur here, and within this level of cooperation you should be ordering the quantities that make the most sense overall for your operation. Examples of cooperation would include that the warehouse tries to slot based upon your ordering patterns, but once something is slotted, if your recommended order quantity plus your safety stock  is a little larger than the storage location capacity, it would make sense to drop your order quantity a little to work within the storage location capacity. If, however, your recommended order quantity is significantly greater than the capacity of the storage location, you need to review your storage location (or set up reserve storage for that item).

 

             Dave Piasecki


From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf Of dselgen
Sent: Thursday, September 06, 2007 12:25 PM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] Defining minimum/maximum stock quantities

 

New to this forum so apologies if this has been covered. Some of my
branch managers use min/max as the amount of product they WANT to
stock of a certain product; some use min/max as the amount of product
they can PHYSICALLY store in a location. I've been asked to come up
with a definition that we all agree upon. Looking for pros/cons of
using either definition. Thank you.


#1685 From: "drugsaareus" <sandyh.macdonald@...>
Date: Fri Sep 7, 2007 7:02 pm
Subject: Reverse logistics
drugsaareus
Send Email Send Email
 
I'm trying to put a price on the cost of processing returns. Any magic
formula's out there?

Sandy MacDonald
Provincial Drug Distribution Program

#1686 From: nikmath khan <nickmathkhan@...>
Date: Sat Sep 8, 2007 9:13 am
Subject: Re: Defining minimum/maximum stock quantities
nickmathkhan@...
Send Email Send Email
 
Hai here you can go to find the formula for min-max....
 

 

Formula for Min-Max Setup

 

The formula is very simple and straight forward - the trick is in the setting of the variables!!

 

Max = (Safety Stock + Lead-time + Replenishment Cycle) * Forecast

Min = (Safety Stock + Lead-time) * Forecast

 

Example

Forecast = Predicted unit sales = 10 

Safety Stock = months = 0.25

Lead-time = months = 0.25

Replenishment Cycle = months = 0.5

 

Therefore: Max = (0.25 + 0.25 + 0.5) * 10 = 10

               Min = (0.25 + 0.25) * 10 = 5

 

Like I said, the level calculation is very simple - the magic lies in the balancing of Safety Stocks and Replenishment Cycles. As always, there is a lot of pain involved as well: Managing accurate lead-times, (which you should be able to control!) and proper forecasting. Forecasting is absolutely key - in my opinion probably one of the biggest factors messing up investments in stocks.

 

Some things to keep in mind when setting safety stock:

 

–    –Accuracy of forecast: More accurate forecast, lower safety stock

•     –Lead-time: Longer lead-time, higher safety stock

•     •Lead-time accuracy: Higher variance, higher safety stock

•     •Review period: Longer review period, higher safety stock

•     •Replenishment cycle: Shorter cycles, higher safety stock

•     •Target Service level: Higher levels, higher safety stock (Linked to criticality)

 
 

 
Nihmath


----- Original Message ----
From: Dave Piasecki <dave@...>
To: Distribution_Inventory_Control@yahoogroups.com
Sent: Friday, 7 September, 2007 7:11:23 PM
Subject: RE: [Distribution_Inventory_Control] Defining minimum/maximum stock quantities

Min/max is really just a slight variation of Fixed Reorder Point (your min, basically calculated as lead-time demand plus safety stock) and Fixed Replenishment Quantity (Your max minus your min). What it sounds like you are really asking is how to determine your order quantities. This is primarily a cost decision that also takes into account operational restraints. You should start with an Economic Order Quantity or similar calculation that takes into account order costs, holding costs, and price breaks. Then work with this within the overall space and inventory investment restraints for your organization. You obviously can’t order more than you can afford to pay for or more than you can physically store.

However, when I mention working within your physical storage restraint, that doesn’t mean that the warehouse decides your order quantity based upon the slot they set up for the product. The reverse is more likely since the warehouse should try to slot based upon your ordering patterns. However, if your warehouse is bursting at the seams, you need to adjust your order quantities or look for other storage alternatives. There is some cooperation that needs to occur here, and within this level of cooperation you should be ordering the quantities that make the most sense overall for your operation. Examples of cooperation would include that the warehouse tries to slot based upon your ordering patterns, but once something is slotted, if your recommended order quantity plus your safety stock  is a little larger than the storage location capacity, it would make sense to drop your order quantity a little to work within the storage location capacity. If, however, your recommended order quantity is significantly greater than the capacity of the storage location, you need to review your storage location (or set up reserve storage for that item).

 

             Dave Piasecki


From: Distribution_ Inventory_ Control@yahoogro ups.com [mailto: Distribution_ Inventory_ Control@yahoogro ups.com ] On Behalf Of dselgen
Sent: Thursday, September 06, 2007 12:25 PM
To: Distribution_ Inventory_ Control@yahoogro ups.com
Subject: [Distribution_ Inventory_ Control] Defining minimum/maximum stock quantities

 

New to this forum so apologies if this has been covered. Some of my
branch managers use min/max as the amount of product they WANT to
stock of a certain product; some use min/max as the amount of product
they can PHYSICALLY store in a location. I ' ve been asked to come up
with a definition that we all agree upon. Looking for pros/cons of
using either definition. Thank you.




Unlimited freedom, unlimited storage. Get it now

#1687 From: "Dave Piasecki" <dave@...>
Date: Mon Sep 10, 2007 1:54 pm
Subject: RE: Reverse logistics
inventoryops
Send Email Send Email
 

No magic, you have to do the math yourself. The costs of returns can vary significantly, you need to consider things like the labor costs associated with physically processing the returns and handling the associated transactions (customer credits, inventory adjustments), repackaging, scrap rates for returns and salvage rates, freight costs, credit card transaction fees, facility costs related to returns, etc.

 

             Dave Piasecki


From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com] On Behalf Of drugsaareus
Sent: Friday, September 07, 2007 2:03 PM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] Reverse logistics

 

I'm trying to put a price on the cost of processing returns. Any magic
formula's out there?

Sandy MacDonald
Provincial Drug Distribution Program


#1688 From: "jonah_the_mighty" <jonah_the_mighty@...>
Date: Mon Sep 10, 2007 9:41 pm
Subject: inventory control
jonah_the_mi...
Send Email Send Email
 
Hello everyone, this is my first post but I am in need of some
guidance.  I am having a lot of trouble getting good inventory numbers
to the front.  I believe alot of this is due to work in progress,
however my physical counts never fit the computer's count.  Has anyone
out there run into this problem, and how did you overcome it?  Any
questions or suggestions would be appreciated.

#1689 From: "Butcher, Mark (GE Indust, ConsInd, consultant)" <mark.butcher@...>
Date: Tue Sep 11, 2007 12:05 pm
Subject: RE: inventory control
mebjr1974
Send Email Send Email
 

I would say that you have two options. First, would be to cycle count during periods when the operations team is not performing any functions (replenishment, order selection, receiving). If this is not an option, then you will need to be able to identify and verify product at each stage of movement.

 

Mark Butcher

Inventory Control Manager

Baltimore ADC

238 Belvidere Rd

Perryville, MD, 21903

Phone: 410-996-2616

Fax: 410-996-2634

mark.butcher@...

 

 

-----Original Message-----
From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com]On Behalf Of jonah_the_mighty
Sent: Monday, September 10, 2007 5:41 PM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] inventory control

 

Hello everyone, this is my first post but I am in need of some
guidance. I am having a lot of trouble getting good inventory numbers
to the front. I believe alot of this is due to work in progress,
however my physical counts never fit the computer's count. Has anyone
out there run into this problem, and how did you overcome it? Any
questions or suggestions would be appreciated.


#1690 From: "jonah_the_mighty" <jonah_the_mighty@...>
Date: Tue Sep 11, 2007 1:00 pm
Subject: Re: inventory control
jonah_the_mi...
Send Email Send Email
 
Thank you for the response.  I spent some time on inventoryops.com so
I know what you mean by cycle counting, but to track at each
movement; does that mean simply more forms to sign or barcoding?  If
we go barcoding what are the pitfalls there?

--- In Distribution_Inventory_Control@yahoogroups.com, "Butcher, Mark
(GE Indust, ConsInd, consultant)" <mark.butcher@...> wrote:
>
> I would say that you have two options. First, would be to cycle
count during periods when the operations team is not performing any
functions (replenishment, order selection, receiving). If this is not
an option, then you will need to be able to identify and verify
product at each stage of movement.
>
> Mark Butcher
> Inventory Control Manager
> Baltimore ADC
> 238 Belvidere Rd
> Perryville, MD, 21903
> Phone: 410-996-2616
> Fax: 410-996-2634
> mark.butcher@...
>
>
> -----Original Message-----
> From: Distribution_Inventory_Control@yahoogroups.com
[mailto:Distribution_Inventory_Control@yahoogroups.com]On Behalf Of
jonah_the_mighty
> Sent: Monday, September 10, 2007 5:41 PM
> To: Distribution_Inventory_Control@yahoogroups.com
> Subject: [Distribution_Inventory_Control] inventory control
>
> Hello everyone, this is my first post but I am in need of some
> guidance. I am having a lot of trouble getting good inventory
numbers
> to the front. I believe alot of this is due to work in progress,
> however my physical counts never fit the computer's count. Has
anyone
> out there run into this problem, and how did you overcome it? Any
> questions or suggestions would be appreciated.
>

#1691 From: "Butcher, Mark (GE Indust, ConsInd, consultant)" <mark.butcher@...>
Date: Tue Sep 11, 2007 1:25 pm
Subject: RE: Re: inventory control
mebjr1974
Send Email Send Email
 

I would have to say that would depend on the operation that you have. In a traditional warehouse environment you have receiving, put-away, replenishment, and order fulfillment processes. You want the ability to track product at each of these stages. If you have a Warehouse Management System that drives these functions then barcodes are the best option. This allows for tracking of each item throughout the process and you can identify where the product is at any point. However, if you have a manual system in place, then of course this would not work and you would need to adapt a system that would have a paper trail for each process. Any way it goes, the principle is the same when it comes to counting. You have to have a way to account for product that is “in progress” and you need to verify that it is correct in addition to counting the storage and pick locations.

 

Mark Butcher

Inventory Control Manager

Baltimore ADC

238 Belvidere Rd

Perryville, MD, 21903

Phone: 410-996-2616

Fax: 410-996-2634

mark.butcher@...

 

 

-----Original Message-----
From: Distribution_Inventory_Control@yahoogroups.com [mailto:Distribution_Inventory_Control@yahoogroups.com]On Behalf Of jonah_the_mighty
Sent: Tuesday, September 11, 2007 9:00 AM
To: Distribution_Inventory_Control@yahoogroups.com
Subject: [Distribution_Inventory_Control] Re: inventory control

 

Thank you for the response. I spent some time on inventoryops.com so
I know what you mean by cycle counting, but to track at each
movement; does that mean simply more forms to sign or barcoding? If
we go barcoding what are the pitfalls there?

--- In Distribution_Inventory_Control@yahoogroups.com, "Butcher, Mark
(GE Indust, ConsInd, consultant)" <mark.butcher@...> wrote:
>
> I would say that you have two options. First, would be to cycle
count during periods when the operations team is not performing any
functions (replenishment, order selection, receiving). If this is not
an option, then you will need to be able to identify and verify
product at each stage of movement.
>
> Mark Butcher
> Inventory Control Manager
> Baltimore ADC
> 238 Belvidere Rd
> Perryville, MD, 21903
> Phone: 410-996-2616
> Fax: 410-996-2634
> mark.butcher@...
>
>
> -----Original Message-----
> From: Distribution_Inventory_Control@yahoogroups.com
[mailto:Distribution_Inventory_Control@yahoogroups.com]On Behalf Of
jonah_the_mighty
> Sent: Monday, September 10, 2007 5:41 PM
> To: Distribution_Inventory_Control@yahoogroups.com
> Subject: [Distribution_Inventory_Control] inventory control
>
> Hello everyone, this is my first post but I am in need of some
> guidance. I am having a lot of trouble getting good inventory
numbers
> to the front. I believe alot of this is due to work in progress,
> however my physical counts never fit the computer's count. Has
anyone
> out there run into this problem, and how did you overcome it? Any
> questions or suggestions would be appreciated.
>


#1692 From: "jonah_the_mighty" <jonah_the_mighty@...>
Date: Tue Sep 11, 2007 3:10 pm
Subject: Re: inventory control
jonah_the_mi...
Send Email Send Email
 
I think it is obvious that my current system is less than ideal.  We
have spreadsheets and yield reports but all has fallen short of the
glory of accuracy.  I suppose the first thing to do is to identify
whether I have a dominatly manual system or electronic system that
would benefit more from scanners; then head in that direction.  Thank
you very much for the reply.

--- In Distribution_Inventory_Control@yahoogroups.com, "Butcher, Mark
(GE Indust, ConsInd, consultant)" <mark.butcher@...> wrote:
>
> I would have to say that would depend on the operation that you
have. In a traditional warehouse environment you have receiving, put-
away, replenishment, and order fulfillment processes. You want the
ability to track product at each of these stages. If you have a
Warehouse Management System that drives these functions then barcodes
are the best option. This allows for tracking of each item throughout
the process and you can identify where the product is at any point.
However, if you have a manual system in place, then of course this
would not work and you would need to adapt a system that would have a
paper trail for each process. Any way it goes, the principle is the
same when it comes to counting. You have to have a way to account for
product that is "in progress" and you need to verify that it is
correct in addition to counting the storage and pick locations.
>
> Mark Butcher
> Inventory Control Manager
> Baltimore ADC
> 238 Belvidere Rd
> Perryville, MD, 21903
> Phone: 410-996-2616
> Fax: 410-996-2634
> mark.butcher@...
>
>
> -----Original Message-----
> From: Distribution_Inventory_Control@yahoogroups.com
[mailto:Distribution_Inventory_Control@yahoogroups.com]On Behalf Of
jonah_the_mighty
> Sent: Tuesday, September 11, 2007 9:00 AM
> To: Distribution_Inventory_Control@yahoogroups.com
> Subject: [Distribution_Inventory_Control] Re: inventory control
>
> Thank you for the response. I spent some time on inventoryops.com
so
> I know what you mean by cycle counting, but to track at each
> movement; does that mean simply more forms to sign or barcoding? If
> we go barcoding what are the pitfalls there?
>
> --- In Distribution_ <mailto:Distribution_Inventory_Control%
40yahoogroups.com> Inventory_Control@yahoogroups.com, "Butcher, Mark
> (GE Indust, ConsInd, consultant)" <mark.butcher@> wrote:
> >
> > I would say that you have two options. First, would be to cycle
> count during periods when the operations team is not performing any
> functions (replenishment, order selection, receiving). If this is
not
> an option, then you will need to be able to identify and verify
> product at each stage of movement.
> >
> > Mark Butcher
> > Inventory Control Manager
> > Baltimore ADC
> > 238 Belvidere Rd
> > Perryville, MD, 21903
> > Phone: 410-996-2616
> > Fax: 410-996-2634
> > mark.butcher@
> >
> >
> > -----Original Message-----
> > From: Distribution_ <mailto:Distribution_Inventory_Control%
40yahoogroups.com> Inventory_Control@yahoogroups.com
> [mailto: Distribution_ <mailto:Distribution_Inventory_Control%
40yahoogroups.com> Inventory_Control@yahoogroups.com]On Behalf Of
> jonah_the_mighty
> > Sent: Monday, September 10, 2007 5:41 PM
> > To: Distribution_ <mailto:Distribution_Inventory_Control%
40yahoogroups.com> Inventory_Control@yahoogroups.com
> > Subject: [Distribution_Inventory_Control] inventory control
> >
> > Hello everyone, this is my first post but I am in need of some
> > guidance. I am having a lot of trouble getting good inventory
> numbers
> > to the front. I believe alot of this is due to work in progress,
> > however my physical counts never fit the computer's count. Has
> anyone
> > out there run into this problem, and how did you overcome it? Any
> > questions or suggestions would be appreciated.
> >
>

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