Compared to a classical
reorder point system, the "pulse" required less inventory, especially if both levels of demand and demand and supply uncertainty were high, and delivery times and order cycles long.
more detail later), the
reorder point is set at the level of demand during lead time, which ensures adequate stock is on hand while waiting for an order to arrive.
The
reorder point system requires basic data that includes inventory status (usually updated daily) and quantities on order (either from a supplier or produced in-house).
Advisory guidance incorporates automated alerts that help the supply chain planner as he or she plans and executes tasks, Opt-in automation occurs when systems perform the complex tasks themselves, such as simulating multiple models and recommending the best approach Automation that can be overridden takes responsibility for the task unless told otherwise; such as automatic
reorder points for replenishment.
Our approach is looking at a bigger picture to create solutions that benefit overall productivity and plant longevity," said Hagberg, who also pointed out that Mining Resource Solutions stands as a strategic partner that can assist operations with monitoring parts usage and parts
reorder points, and projecting what parts will be required for good preventative maintenance.
The experience with demand,
reorder points, and inventory management is important for Chinese companies that seek further penetration into the Latin America market.
The data was then input into an Excel model along with data on order and ship time and the service-level rate to compute safety stock and
reorder points for each item.
But inventory costs money too, so it's important to manage deployment strategies, determine efficient order quantities and
reorder points, and set safety stock levels.
Reorder points are set and stock outages are eliminated through automatic electronic reordering to the supplier of each item, reducing production downtime.
