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…

How to Model Inventory Level Changes from Reduced Stock Locations

Executive Summary How can one model the effect on inventory from a change in the stocked locations? We cover two approaches. Introduction We received this question, so we thought we would place the answer and the question into an article. Question #1 Is there an industry standard way to think about the number of source…

Questions Around S&OP, MPS and Capacity Planning

Executive Summary The following are questions and answers around S&OP. These questions highlight the confusion around these planning topics. Introduction These questions were asked and answered on the topic of S&OP. Question #1 I am not understanding how S&OP is technically done (at the supply side). There are so far three different approaches I found….

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…