16 Mar 2020

Assessing Seasonal Demand

2020-04-15T22:26:44-04:00March 16th, 2020|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

Properly assessing demand variation is vital to inventory management success, starting with defining proper safety stock and inventory levels. However, before you can assess and item’s demand variation, you must determine whether it experiences seasonality.

30 Jan 2020

Safety-Stock for Supply Variation – Part 2

2020-04-15T08:02:05-04:00January 30th, 2020|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

To analyze supplier lead time, reference recent history to determine the typical number of days from order placement to receipt of goods. Remember, a day should be consistently defined the same whether conducting lead time analysis, demand analysis, or calculating kanban solutions. That is, if monthly demand is based on workday demand then...

30 Dec 2019

Safety-Stock for Supply Variation – Part 1

2020-04-28T09:40:12-04:00December 30th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

The proper management of inventory, typically calls for safety-stock to mitigate supply variation. Whether a supplier is an external company or an internal department, supply variation must be identified and properly addressed to prevent production downtime and minimize overstock. Supply-related safety-stock is abnormal. A reliable supplier should never require safety stock. After all, quantity, quality and lead-times should be accurate. Unfortunately, many inventory managers form the bad habit of seeing buffer inventory as a normal and necessary result of being adequately prepared...

16 Dec 2019

Safety-Stock for Demand Variation – Part 3

2020-03-26T21:31:51-04:00December 16th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

In the first two parts of this series we examined a step-by-step process for setting demand variation safety stock by item category. This method is preferred, because it is far more efficient than trying to manage unique safety stock for every unique SKU. However, sometimes it doesn’t always apply well to every item.

9 Dec 2019

Safety-Stock for Demand Variation – Part 2

2020-03-26T21:31:15-04:00December 9th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

The goal of demand variation analysis is to determine the target safety-stock for every kanban item necessary to prevent a demand-related stockout while limiting on-hand inventory. After you have quantified demand variation, you must determine whether to define safety-stock for each unique item, or for categories of items with similar demand variation patterns.

2 Dec 2019

Safety-Stock for Demand Variation – Part 1

2020-03-26T21:31:07-04:00December 2nd, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

The goal of demand variation analysis is to determine the target safety-stock for every kanban item necessary to prevent a demand-related stockout while limiting on-hand inventory. After you have quantified demand variation, you must determine whether to define safety-stock for each unique item, or for categories of items with similar demand variation patterns.

24 Nov 2019

Measuring Demand Variation – Part 3 of 3

2020-03-26T21:35:56-04:00November 24th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

With kanban, lead-time defines the appropriate time period for analyzing an item’s demand variation. A major component of demand variation is time. Thus, time is key for kanban. It is vital that demand data is segregated into the proper time periods. So, how do we define “proper”?

18 Nov 2019

Measuring Demand Variation – Part 2 of 3

2020-03-26T21:35:33-04:00November 18th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

When you lack sufficient demand data, you're forced to estimate demand variation. Estimation is a last resort. The goal is to calculate demand variation using the best data we have, even if that data is less than perfect...

11 Nov 2019

Measuring Demand Variation – Part 1 of 3

2020-03-26T21:35:19-04:00November 11th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

Quantifying demand variation is definitely one of the more contentious topics among inventory managers and business analysts. It makes sense. After all, inaccurately measuring the variation of demand has real business consequences such as tied-up cash, delivery failure, or even both!

30 Oct 2019

Target Lead Time and Order Quantities – Part 2 of 2

2020-03-17T22:31:45-04:00October 30th, 2019|Categories: Inventory Management, Lead Time Reduction, Lean Manufacturing, Supply Chain|

A vital parameter for developing ideal kanban solutions is Target Lead-Time (TLT). TLT can be thought of as “perfect” lead-time. TLT directly influences Target Minimum Order Quantity (TMQQ) and Target Standard Package Quantity (SPQ)...

Fasteners and Class C Component Supply

Falcon supplies fasteners and inventory management services to manufacturers in North and South Carolina, Kentucky, and the surrounding areas.

Charlotte Office

10715 John Price Road
Charlotte, NC 28273

Phone: 800.438.0332

Mobile: 704.588.4740

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P.O. Box 7429 | Charlotte, NC 28241-7429

Phone: 704.588.4740

Fax: 704.588.5753

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Phone: 502.266.6292

Fax: 502.526.5567