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Signs Predictive Analytics Aren’t Used to Determine Buffer Inventory
Supply Chain Dave McPhetridge Supply Chain Dave McPhetridge

Signs Predictive Analytics Aren’t Used to Determine Buffer Inventory

Forgive us for asking this set-up question with an obvious answer – Does your current buffer-inventory calculation include all these factors? No, of course it doesn’t.

We assure you, we appreciate and never underestimate the value of experience and intuition in a supply-chain professional. We have accumulated quite a bit over the decades, and it continues to serve us well. Why are we telling you this?

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5 Reasons Businesses Should Use Simulations Instead of Formulas or Algorithms to Determine Optimal Inventory Levels
Inventory Optimization Right Sized Inventory Inventory Optimization Right Sized Inventory

5 Reasons Businesses Should Use Simulations Instead of Formulas or Algorithms to Determine Optimal Inventory Levels

A startup learning to effectively manage day-to-day demand. A mature Fortune 100 business simply pushing for improvement. Regardless, when a company requires inventory, simulations – not calculations – can accurately determine stock levels. This saves money and resources, allowing the business to spend more time focusing on strategic initiatives.

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