Loop optimizations can be used in specific cases:
Retardants In some specific cases, you can reduce your inventory by decreasing delivery frequency.
Optimizing the quantity to order A specific method for very expensive parts.
Limiters Sometimes the ordering result has to be corrected
Optimizing the Transportation Safety Time Transportation Safety Time can impact your inventory. In some cases you can reduce it drastically.
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Visual ReOrder sizing is based on gross demand, flows description and manufacturing constraints.
To calculate the VRO Loop requires to have a good understanding of all factors of the global SupplyChain.
The calculation of MIHI helps to design a storage layout consistent with the demand and the VRO process.
Transportation Safety Time (TST) has to be known to insure a good sizing of the VRO loop.
Inventory strategy has to be completlely reconsidered with VRO. Indeed your safety stocks have became useless with this system!
Loops value can be optimized for some specific cases
A simple worksheet to centralize all your Pick-Up Orders, maintain their loops and calculate Maximum In-House Inventory based on MPS data.
You order the same part number to 2 suppliers and you have to respect procurement quotas for each of them.