Manufacturing Journalist TR Cutler Reports on Best Forecasting Inventory Predictions
Ft. Lauderdale, FL -- (SBWIRE) -- 08/15/2013 -- Manufacturing journalist, TR Cutler uncovers opportunities to reduce inventory and identify parts for transition kanban replenishment in the recent issue of AutomationMedia.com. In the article entitled, “Demand Forecasting Drives Accurate Inventory Predictions,” Cutler noted, “The ability to simulate changes in supplier lead time, lot size, and safety stock, ensures that projects can be shared with other planners for viewing purposes and projects can be categorized.”
Historical data identifies the potential inventory savings while simultaneously forecasting part shortages. Simulation highlights the potential weakness in current replenishment methodologies. Typically the Min-Max methodologies used by ERP systems with reorder points, is the primary cause of excess inventory and material shortages. Since reorder points are not maintained they tend to go out of sync leading to higher inventory on-hand.
Manufacturers and Distribution centers need to visually view the gap between consumption and on hand inventory. This approach is only possible when measuring the variability of actual consumption. The inventory optimization tool allows companies to quickly determine which parts are good candidates for kanban replenishment based on potential savings and (S/X, Std Deviation/Mean) variability of consumption.
To read the article in its entirety link here: http://www.automationmedia.com/ARDetail.asp?ID=120.
About Thomas R. Cutler
Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., (http://www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists, as well as author of more than 500 feature articles annually regarding the manufacturing sector. Cutler is the most published freelance industrial journalist worldwide and can be contacted at firstname.lastname@example.org. Follow Thomas R Cutler on Twitter @ThomasRCutler.
TR Cutler, Inc.
Thomas R. Cutler