Your QAD Doctor Specialist.

Many customers asked me about the BEST Re-order (ROP) and I always told them there is NO MAGIC formula as it varies from industry to industry. But this article from APICS may solve the very questions you may be asking.

The traditional challenge for most distributors is to have the right amount of inventory for each product they stock. Too much inventory ensures all orders will be filled, but carrying that inventory is cost-prohibitive. Conversely, not enough inventory keeps the investment low, but customer orders go unfilled. When it comes to addressing this problem, supply chain management usually gets most of the attention.

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Once in a while you will be faced with such a scenerio whereby you have plenty of actual Sales Order Backlog but insufficient stock to allocate for shipment due to many reason. In such a situation, what do you do?

While from insufficient supplier capacity, lagging manufacturing, or a sudden surge in demand, supply shortages can wreak havoc on an organization. Add to that today’s globalization of supply chain and sourcing, and the demand management challenges become increasingly difficult to handle. More and more, organizations are turning to allocation planning.

(Click the picture to open the PDF)

The Supply Chain Asia Logistics Awards was held at the JW Marriott Shanghai on 20 November 2008. More than 270 supply chain and logistics professionals attended the event (click here to visit EVENT PHOTOS). The winners for the awards are listed below: