This post is the continuation of the How the Sawtooth model works. If you haven’t read it, read it before
Category: Material planning
Inventory management – using consignment
Consignment is a significant inventory planning method. The idea is that the customer is paying for the goods only when it is consumed (or sold).
It is an excellent system for the client but also for the supplier that saves a lot of waste in the supply chain.
How to make a consignment agreement and why.
Inventory management using Kanban
Kanban is a “magical” inventory management system. It requires no databases and no gadgets. Yet, it allows organizations with a lot of parts to manage them almost without much planning. It is very useful and I am recommending it every time it fits.
This post is all about the Kanban system, with examples and recipes on how to make it works.
As always please add a “LIKE” to the Facebook page so others can also find this post.
Material balancing – finding material leakage
In today’s organizations we have a lot of acquired items and raw materials. Although most organizations have well organized methods of the flow of material, it is very difficult to find material leakages. They have a direct effect on the bottom line since it is money spend on material that was not taken into consideration during the costing phase. In this post: how to find the leakages and how to reduce their unknown part.
ABC inventory planning
ABC model allow us to plan our inventory in a smart way. We refer to each item as part of a group. Some groups are important and we micro manage them and some not.
The basics of MRP planning
Questions to be answered: 1. What is the purpose of MRP? 2. How the FG (finish goods) forecast become RM
How Sawtooth model works – using inventory days
The classic sawtooth model is a really a good inventory model. However, the classic model uses quantities instead of inventory days.