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The Problem Statement

The problem can be stated as follows: How to best use inventory in an Omni Channel environment to maximize order fulfillment whilst minimizing end of life or obsolete inventory as well as working capital investment.

Continue reading “Business Architecture for the Omni Channel Inventory Challenge” »

The Problem Statement

Business process architectures and their definitions are defined very differently by consulting firms and companies alike. There is no standard. However, this article will attempt to define some of the foundational elements of a process architecture.

There are 3 key elements which form the foundation of a business process architecture:

  1. The structure of the underlying supply chain – Horizontal View
  2. The flow of information and materials – Vertical View
  3. The maturity level of an organization

We will explore the 3 key elements now and then create an architectural model to be used by any organization.

Continue reading “Advanced Process Architecture and Design Principles” »

The Problem Statement

The world of replenishment techniques is changing rapidly. After the development and deployment of classical ROP (Re-order Point), MPS (Master Production Scheduling) and DRP (Distribution Requirements Planning) techniques for many years, recently there is a drastic change in the adoption of more advanced techniques for replenishment using TOC (Theory of Constraints) and Machine Learning principles. The TOC principle came from the fashion retail industry, which needed faster techniques to adopt to short life cycle products and rapid changes in consumer buying behavior.

Continue reading “Changes to Techniques to Replenishment to Stores and DC” »

NOOS vs Pareto

The Problem Statement

A popular approach in fashion retailing to manage store level replenishment is to include a SKU (Stock Keeping Unit) into a NOOS (Never Out of Stock) supply program. The objective is to actively manage and guarantee shelf availability of that SKU. However, more often than not NOOS becomes a supply program for a range of SKUs without considering the “real” and “changing” speed of a SKU in a store. This “real” and “changing” speed differs from store to store as well as can change rapidly over the life span of a SKU.

Instead of using a fixed linkage between a product and a supply program, which will be only a reviewed and adopted infrequently, using a more dynamic method as reviewed below is better suited for fashion and softgoods products.

Continue reading “NOOS Versus Pareto, who wins in Retail?” »

We discussed in an earlier article the use of “Probability instead of Accuracy as a Measure in Forecasting” and now we want to take this one step further and explore the use of probability information derived from the forecasting process for Capacity and Material Planning.

Continue reading “Probability applied to Capacity and Material Planning” »