The right way to measure forecast accuracy if you are interested in optimizing stock levels is to focus on the accuracy of the service level projection. Just because you set a service level target (or a system recommends a target) doesn’t mean you’ll actually achieve the target. This blog explains why and details how to calculate service level accuracy.
Inventory is a result of decisions. Inventory is not the problem….the problem is the decisions.
ABC inventory classification has been around so long that most planners just assume it’s the only way to segment your inventory. In fact, it’s not. And it’s not even nearly the best way. It’s actually a throwback from technology developed during the 1960s that hasn’t responded to the orders of magnitude increase in computer power that has enabled far better ways of solving the problem.
Inventory Segmentation from the 1960s
Muddled meanderings about a career
My biggest supply chain mistake is that I wish could have made more of an impact on the lives of those working in the supply chain.
A look back
Target announced, today, that Arthur Valdez will be hired as their new EVP of Supply Chain and Logistics. Mr. Valdez has spent the last sixteen years with Amazon in various positions driving that company’s online and international supply chain. I think this is a huge step into “The Amazon of Things”!