Jan 12, 2022
The main goal in the spare parts industry is to minimize the downtime of your valuable assets such as aircrafts, vessels, oil rigs, wind turbines, generators, manufacturing equipment and heavy machinery. Whenever an asset needs repair or maintenance, the piece of machinery undergoes a full stop which is a highly costly scenario.
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Dec 22, 2021
Fashion is driven by novelty. It constitutes the core of fashion, as well as its key challenge. Fashion brands are continuously producing and designing new collections that are driven by current trends and the upcoming season.
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Nov 17, 2021
Forecasting is the practice of analyzing historical data to predict anticipated conditions in the future and is at the core of supply chains. Naturally, increasing their accuracy became highly sought after. But what factors affect forecasting accuracy?
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Oct 27, 2021
At its core, the practice of numerical forecasting is about using a scientific approach to define a future anticipation based on previous historical data. When we produce, or transport goods, there are delays involved in every process. This means that what you decide today ultimately reflects an anticipated condition about the future.
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Oct 20, 2021
The Bullwhip Effect is a well known supply chain distortion, commonly described as a problem that must be avoided. At Lokad, however, we would argue that the bullwhip effect is a phenomenon that naturally occurs in supply chains, and minimizing it is not necessarily advantageous for your business.
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Sep 29, 2021
In supply chain, the service level is a measure of quality of service. However, the definition of service level has not been fully agreed on. Some use it as the percentage of total demand covered in units of product, others define it as the percentage of orders fulfilled.
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Feb 10, 2021
Sales and Operations Planning, or S&OP as it's more commonly referred to, helps large organisations to synchronise their operations by leveraging a deeper alignment between the supply chain and other key departments.
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Nov 11, 2020
Lead time can be summarised as the latency between the initiation and completion of a process. In a supply chain, this is usually involved whenever goods are purchased, transformed or serviced.
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Oct 7, 2020
Probabilistic forecasts are used for everything, from predicting tomorrow's weather to generating betting odds on sporting events. Instead of looking at one possible outcome, this technique looks at all possible events and assigns a probability of each one occurring.
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Sep 2, 2020
Min/Max is one of the earliest automated replenishment methods that is now used across almost every piece of inventory software on the market. Its roots can originally be traced back to around the 19th century; it was developed as a visual method where you could physically see the amount of stock in a carefully sized bin.
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Jul 22, 2020
A bill of materials - which is more commonly referred to as a BOM - is a list of the raw materials and associated quantities that are needed to manufacture, assemble or repair an end product. Much like a list of ingredients that a chef would use to make a recipe, a BOM provides us with a compact inventory-oriented representation of the requirements associated with an end product.
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Jun 24, 2020
In inventory control, there is a financial trade-off between purchasing more inventory and the cost of a potential stock-out. The more stock you have, the more working capital is needed and with too little stock on hand there are potential sales that can be missed, and even entire production processes that could be interrupted.
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