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Retardants

If the minimum shipping quantity or consumption batch size is covering more than its average consumption between 2 deliveries, you are not ordering this reference each time you fax the related Pick-Up Order but as soon as you start to consume this quantity.
It means that you are ordering in advance versus the real consumption.

For example:

  • Minimum Order Quantity = 50;
  • Time Between 2 Deliveries = 1 day;
  • Daily consumption = 10.

You are going to order every 5 days as soon as you start to consume what you have just received. It means that your order is going to be delivered at least 4 days before the real need.

In order to delay the order, you just need to adjust for this specific part the Time Between 2 Deliveries (TB2D) as close as possible of the consumption time of one MOQ: 5 days or if you are conservative, 4 days.

What are the consequences?

You have to create at least 2 Pick-Up Orders for the supplier, one with parts ordered every days and one with parts ordered every 5 days. Do not mix part with a different ordering frequency on the same Pick-Up Order:It is confusing during execution for the Counter and the Supplier;It allow you to reduce the number of parts/rows of the Pick-Up Order that you are sending every day (and save paper);It simplifies the balancing calculation of the counting load on the Counting Faxing Sequencer.

How to detect when I need to decrease the delivery

Go to the In-Transit Cart and select Pick-Up Orders with quantity to order at zero. If you have more than one Pick-Up Order in the In-Transit Cart check if references associated have 0 on the other PUO(s). Confirm this by going to the PUO archive and check the last 5 PUO.

2 cases can happen for a reference:

  • You have always 0:

1 - it is maybe a new/old reference and you are in a transition period (to be checked), so maybe you have nothing to do;
2 - the period covered by your audit is not enough and it is a very slow mover: the frequency can be decreased drastically (you can have a monthly PUO, a weekly PUO and a daily PUO for the same supplier);

  • You have sometime zero:

Define the ideal time between 2 deliveries which has to be a multiplier of the initial TB2D.Try to understand if it is the delivery or the consumption batch which is the root cause of these zeros. If the frequency decrease is due to the consumption batch quantity, evaluate the impact on transportation (trailer load).

The retardant is the value of the multiplier applied to the initial TB2D for the part.


An other easy way to detect if the frequency is consistent with the ordering/consumption constraints is to use the Inventory Efficiency tool. This tool calculates automatically the MOQ and the production batch ratios which are the ratios between the MOQ/production batch and the demand between 2 deliveries. These values represent in fact the retardant optimized values that you can use for the reference.

Loop optimization Loops value can be optimized for some specific cases

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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