GRA's infographic on replenishment methodologies
1
gra.net.au Greater integration/implementation effort Easier to implement, lighter processes & integration a one glance insight to supply chain replenishment practices #3 DAYS COVER target inventory is based off a moving average of recent demand & inventory for the period simple calculation - considers inventory position for a period looks at past trend, not future forecast spikes and troughs will impact inventory settings ROP/ROQ takes elements of days cover & MIN-MAX, planning for demand over lead time #4 accounts for demand over lead time does not account for future orders ROPs/ROQs fixed GRA is Australia’s premier, expert consulting firm specialising in supply chain strategy, planning and execution. We offer consulting, professional services, supply chain planning systems, training & education and benchmarking across a broad range of industries. TPRP combines both MRP and DRP requirements to forecast independent demand and dependent demand #5 works best with advanced inventory optimisation high levels of difficulty to implement requires data and process maturity provides accurate planning of supply chain requirements REPLENISHMENT METHODOLOGIES MIN - MAX once inventory reaches the minimum setting, an order is released to bring inventory back up to the maximum setting set & forget with simple maintenance & system requirements good for environments with limited warehousing space issues with long lead times & additional holding of inventory high risk if the minimum inventory is set to 0 FIXED CYCLE ordering cycles are set with order quantities to be determined simple calculation know when to order not flexible to true inventory requirements high impact when stock out #1 Greatest ROI Smallest ROI EFFORT ROI ERP SYSTEM SPREADSHEET SPECIALIST TOOL - ERP SYSTEM INTEGRATION #2
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Transcript of GRA's infographic on replenishment methodologies
gra.net.au
Gre
ater
inte
grat
ion/
impl
emen
tatio
n ef
fort
Easie
r to
impl
emen
t, lig
hter
pro
cess
es &
inte
grat
ion
a one glance insight to supply chain replenishment practices
#3DAYS COVERtarget inventory is based off a
moving average of recentdemand & inventory for the
period
simple calculation - considers inventoryposition for a period
looks at past trend, not future forecast
spikes and troughs will impact inventory settings
ROP/ROQtakes elements of days cover
& MIN-MAX, planning fordemand over lead time
#4accounts for demand over lead time
does not account for future orders
ROPs/ROQs fixed
GRA is Australia’s premier, expert consulting firm specialising in supply chain strategy,planning and execution. We offer consulting, professional services, supply chain planningsystems, training & education and benchmarking across a broad range of industries.
TPRPcombines both MRP and DRP
requirements to forecastindependent demand and
dependent demand
#5works best with advanced inventory
optimisation
high levels of difficulty to implement
requires data and process maturity
provides accurate planning of supply chainrequirements
REPLENISHMENT METHODOLOGIES
MIN - MAXonce inventory reaches theminimum setting, an order is
released to bring inventory backup to the maximum setting
set & forget with simple maintenance &system requirements
good for environments with limited warehousing space
issues with long lead times & additional holding of inventory
high risk if the minimum inventory is set to 0
FIXED CYCLEordering cycles are set with order
quantities to be determined
simple calculation
know when to order
not flexible to true inventory requirements
high impact when stock out
#1
Gre
ates
t RO
ISm
alle
st R
OI
EFFORT
ROI
ERP
SYST
EMSP
REA
DSH
EET
SPEC
IALI
ST T
OO
L - E
RP S
YSTE
M IN
TEG
RATIO
N
#2
