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gra.net.au
Gre
ater
inte
grat
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impl
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Easie
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a one glance insight to supply chain replenishment practices
#3DAYS COVERtarget inventory is based off a
moving average of recentdemand & inventory for the
period
simple calculation - considers inventoryposition for a period
looks at past trend, not future forecast
spikes and troughs will impact inventory settings
ROP/ROQtakes elements of days cover
& MIN-MAX, planning fordemand over lead time
#4accounts for demand over lead time
does not account for future orders
ROPs/ROQs fixed
GRA is Australia’s premier, expert consulting firm specialising in supply chain strategy,planning and execution. We offer consulting, professional services, supply chain planningsystems, training & education and benchmarking across a broad range of industries.
TPRPcombines both MRP and DRP
requirements to forecastindependent demand and
dependent demand
#5works best with advanced inventory
optimisation
high levels of difficulty to implement
requires data and process maturity
provides accurate planning of supply chainrequirements
REPLENISHMENT METHODOLOGIES
MIN - MAXonce inventory reaches theminimum setting, an order is
released to bring inventory backup to the maximum setting
set & forget with simple maintenance &system requirements
good for environments with limited warehousing space
issues with long lead times & additional holding of inventory
high risk if the minimum inventory is set to 0
FIXED CYCLEordering cycles are set with order
quantities to be determined
simple calculation
know when to order
not flexible to true inventory requirements
high impact when stock out
#1
Gre
ates
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#2
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