For the very expensive parts it maybe important to optimize the total inventory by counting parts not only in the storage area but also on the production line.
This will impact the load of the Counter but maybe interesting when the in-process inventory represents a large part of the total inventory.
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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.
