I am often asked what the best disposition procedure is.
I have a very clear opinion on this. But anyone expecting me to come up with super-smart algorithms and go into complex planning strategies is mistaken.
No, it’s the simple, classic notification inventory procedure. This is because it works according to a clear rule that everyone understands: if the stock falls below the reorder point, please restock. It’s as simple as that.
When driving, I follow the same rule: if the reserve light comes on, I drive to one of the nearest gas stations and fill up again. In operational practice, it has been shown that the inventory reporting procedure is very cost-efficient and at the same time results in low inventories. We have already proven the latter many times in practice.
The prerequisite is, of course, that you stick to this simple rule.
I’m not allowed to order today just because there’s a sales order that will probably lead to a stock shortage tomorrow. The customer order may not be delivered tomorrow because you are still waiting for advance payment or other items in the customer order have not yet been completed. I won’t know for sure until it’s delivered.
Do reorder points also work for seasonal articles or articles with a requirements forecast?
We have solutions for this too. Just ask!
With best regards
-Bernd Reineke-
Image by andreas160578 on Pixabay
