Abstract:
We all know that lead times and lead time variability have a major impact on inventory levels. Clearly, the more variability in supply, the higher the safety stocks needed to maintain service goals.
But what exactly are the relationships between lead time and inventory levels? If a retailer can reduce vendor lead times - and even more important, variability - by what levels can inventory be safely reduced?
Supply Chain Digest, Compliance Networks and Retalon have been working to answer these questions, and have now done so with a breakthrough new on-line calculator.
In this interesting videocast, we'll connect retail out-of-stocks with vendor performance, go through the math of how lead time variability and inventory are connected, present a real case study of the opportunity for inventory reduction one major retailer has in front of it, discuss a proven approach for reducing vendor lead time variability, and introduce the new, free, on-line calculator.
Screen Shot of New Calculator

The calculator involves entering a few parameters regarding a SKU or category of inventory, and then seeing how reducing vendor lead times or variability change required inventory levels.
Not to be missed for anyone in retail or consumer goods sectors.
Register for this outstanding Videocast to see it all!
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