What will be the real demand? This is a classical question when we are receiving forecasts from our customers and firm orders at the last minute. If we have to start the procurement and/or production process during the forecasts period, it is important to insure that the quantities launched will be consistent with the firm orders.
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Visual ReOrder sizing is based on gross demand, flows description and manufacturing constraints.
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.
