Comments on: Inventory and Demand Analysis http://www.resourcesystemsconsulting.com/blog/archives/37 Thoughts on Supply Chain with a Lean and Six Sigma twist. Thu, 22 Sep 2011 06:55:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jean-Philippe Roland http://www.resourcesystemsconsulting.com/blog/archives/37#comment-9835 Jean-Philippe Roland Fri, 26 Mar 2010 11:28:15 +0000 http://www.resourcesystemsconsulting.com/blog/?p=37#comment-9835 Hello I am trying to do an ABC analysis of a product portfolio based on volatility of demand. Wich levels could delimited A, B and C?? because usig pareto 80% for A is very high... What could be an acceptable volatility for product? Thanks a lot Bests regards jean-philippe Hello

I am trying to do an ABC analysis of a product portfolio based on volatility of demand.
Wich levels could delimited A, B and C?? because usig pareto 80% for A is very high…

What could be an acceptable volatility for product?

Thanks a lot

Bests regards

jean-philippe

]]> By: Lean Sigma Supply Chain » Cutting off the tail http://www.resourcesystemsconsulting.com/blog/archives/37#comment-8821 Lean Sigma Supply Chain » Cutting off the tail Thu, 05 Mar 2009 17:09:01 +0000 http://www.resourcesystemsconsulting.com/blog/?p=37#comment-8821 [...] ABC Analysis can be misleading; some times the Tail has pearls, or at least consequences if your blindly purge. [...] [...] ABC Analysis can be misleading; some times the Tail has pearls, or at least consequences if your blindly purge. [...]

]]> By: Lawrence Loucka http://www.resourcesystemsconsulting.com/blog/archives/37#comment-5620 Lawrence Loucka Sun, 20 Aug 2006 13:52:16 +0000 http://www.resourcesystemsconsulting.com/blog/?p=37#comment-5620 Michael, You're right, ABC is a start. Considering demand volatility attempts to get at stock out risk. Another dimension is certainly lead time - how quickly can you recover from "oh shit we're out". In a recent publication on the Supply Chain Digest web site there is the 2006 WMS RFP which contains a short list of cycle count requirements. Cycle count 1 Generate counts through errors 2 Generate counts by A/B/C 3 Download counts from host 4 Create counts by ranges of items, locations and price 4.1 Opportunistic cycle count during picking Other examples of opportunistic counts include: 1 Putaway - while you are there count the bin above, below, left or right 2 Zero bin - systems says the bin is empty, is it? This is a very quick count. 3 Negative stock Regards, Lawrence Michael,

You’re right, ABC is a start. Considering demand volatility attempts to get at stock out risk. Another dimension is certainly lead time – how quickly can you recover from “oh shit we’re out”.

In a recent publication on the Supply Chain Digest web site there is the 2006 WMS RFP which contains a short list of cycle count requirements.

Cycle count
1 Generate counts through errors
2 Generate counts by A/B/C
3 Download counts from host
4 Create counts by ranges of items, locations and price
4.1 Opportunistic cycle count during picking

Other examples of opportunistic counts include:

1 Putaway – while you are there count the bin above, below, left or right
2 Zero bin – systems says the bin is empty, is it? This is a very quick count.
3 Negative stock

Regards,

Lawrence

]]> By: Michael McLaughlin http://www.resourcesystemsconsulting.com/blog/archives/37#comment-5619 Michael McLaughlin Sun, 20 Aug 2006 13:32:36 +0000 http://www.resourcesystemsconsulting.com/blog/?p=37#comment-5619 Can we expand a bit here? What are the "accepted" methods of cycle counting/analysis? I have a comptroller who has insisted a locally purchased lock washer, valued at $0.003 each with relatively low consumption is an "A" item. She has gone from complaining that we are behind in cycle counts to we count too much and waste resources. Her last response to my questions of how she arrived at her classifications is "I'm the Comptroller, blah blah blah." As a past Materials Manager with education under Ollie White and APICS, I learned the standard Pareto analysis is not always the best. It is a starting point only. Balancing this with risk and item type is best. Something you can buy in town offers less risk to the business than something purchased over seas. Therefore, something that would classically show up as a "c" might be elevated to a b or a under a situation where lots of inventory is a bad thing. Anyway, do you know of widely accepted methods of ABC analysis and cycle counting that is more than the simple "count the items on the daily cycle count list"? I'm looking for descriptions of activity based cycle counting, or methods where lower than c classes are used for commodities such as fasteners, etc.. Any modern info would help. Can we expand a bit here? What are the “accepted” methods of cycle counting/analysis? I have a comptroller who has insisted a locally purchased lock washer, valued at $0.003 each with relatively low consumption is an “A” item. She has gone from complaining that we are behind in cycle counts to we count too much and waste resources. Her last response to my questions of how she arrived at her classifications is “I’m the Comptroller, blah blah blah.”

As a past Materials Manager with education under Ollie White and APICS, I learned the standard Pareto analysis is not always the best. It is a starting point only. Balancing this with risk and item type is best. Something you can buy in town offers less risk to the business than something purchased over seas. Therefore, something that would classically show up as a “c” might be elevated to a b or a under a situation where lots of inventory is a bad thing.

Anyway, do you know of widely accepted methods of ABC analysis and cycle counting that is more than the simple “count the items on the daily cycle count list”? I’m looking for descriptions of activity based cycle counting, or methods where lower than c classes are used for commodities such as fasteners, etc..

Any modern info would help.

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