The Brightwork Forecastable Non Forecastable Formula for Supply Planning

Executive Summary Whether an item can be forecasted at a reasonable forecast accuracy is called the forecastastability of the item. We cover the forecastability formula that we created. The Forecastable or Unforecastable Formula The formula I have developed is listed below. It certainly is not be used in a pure form for every company and…

How to Understand Transportation Lane Configuration in SAP SNP Part 2

Executive Summary This is part two of our article on transportation lane configuration. Introduction: How Transporation Lanes are Setup in APO Transportation Lanes connect the nodes in the network. Transportation lanes are a complex and multifaceted master data object in SAP APO with enormous settings. You will learn about the many settings of Transportation Lane….

How Likely and Cost Effective is it to Reduce Lead Time?

Executive Summary Companies are often told they can relatively easily reduce lead time. We cover how likely this type of program will be successful. Introduction: Can You Really Reduce Lead Time? Lead times are one of the major timing elements within the overall subject of supply chain planning. It is often proposed by Lean consultants…

The Problem with the Location Isolation of the Calculation of the Dynamic Safety Stock Formula

Executive Summary The lack of consideration for relative inventory with the safety stock formula. How inventory parameters should be calculated. I am getting to the real question of safety stock. Infinite planning (The norm) versus constrained planning. Introduction In this article, we will cover a significant limitation of how safety stock is calculated. This limitation…

How to Create a Functional Relationship with Service Levels

Executive Summary Service levels are terribly managed within companies. This is primarily because sales and marketing set service levels without understanding the implication on constraints and supply chain costs. Introduction The choice of service levels sets priorities for how much of each product to stock at each specific location (a warehouse or other internal stock…

Why Magical Ideas Are More Appealing than Standard Supply Planning

Executive Summary Magical thinking permeates supply planning over implementing the fundamentals. We explain why this is the case. Introduction to Magical Ideas in Supply Planning Several magical ideas are popular currently in supply chain management. The concept of Lean — which has been popular for some time, and demand sensing, which has recently become quite popular….

How to Best Perform Supply Chain Lead Time Calculation

Executive Summary We cover how to perform lead time calculation. This includes the various lead times that make up the various lead times to be placed into the supply planning system. Video Introduction: What Makes Up the Lead Time? Text Introduction (Skip if You Watched the Video) Lead times are one of the major timing…

How to Supply Plan Long Lead Time vs Short Lead Time Items

Executive Summary Lead time has a definition and has different categories. Important topics are lead-time accuracy, effective lead time, static versus effective lead time, and long lead time versus short lead-time items. Video Introduction: Lead Time as a Foundational Concept Text Introduction (Skip if You Watched the Video) Lead times are always in the background…

How to Best Understand Engineered to Order

Executive Summary Engineer to order or engineering to order has a specific definition. Sales orders must be submitted consistent with engineered or configuration order as it relates to replenishment trigger. Video Introduction to Our Engineer to Order or Engineered to Order or Engineering to Order Definition Text Introduction (Skip if You Watched the Video) Engineer…