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Feb 13, 2019

Real Time Visibility in Supply Chains with Pierre Khoury

A tight control over lead times is important in order to optimize a supply chain. Yet, while electronic inventory management started to provide transparency on stock levels back in the 70's, tracking mobile assets only came much later. The term 'supply chain transparency' refers to the real-time positioning of all of a supply chain's assets, including the mobile ones.

Feb 6, 2019

Data Lakes in Supply Chain

Data lakes are data storage technologies intended for bulk reads and bulk writes. They are particularly well suited to address supply chain challenges, because many situations require an inspection of the company's entire history of orders and stock movements.

Jan 16, 2019

Terabyte Scalability for Supply Chains

The relevant amount of historical data when considering large supply chains frequently exceeds one terabyte. As a result, inventory control requires two distinct flavors of software: transactional software (e.g. an ERP) to manage the resources, and predictive software (e.g. Lokad) to optimize the resources.

Jan 9, 2019

Why Safety Stock Is Unsafe

[Safety stocks](https://www.lokad.com/calculate-safety-stocks-with-sales-forecasting) are an inventory optimization method that enforces an extra quantity of stock beyond the expected demand in order to maintain a target [service level](https://www.lokad.com/service-level-definition). This method relies on key statistical assumptions about the demand forecast, most notably that the error is normally found in the distribution.

Dec 12, 2018

Generations of Machine Learning

Machine learning is an umbrella term that includes diverse algorithmic approaches. In supply chain, the historical way of doing machine learning was time-series forecasting. However, this approach has been superseded by a series of superior forecasting approaches.

Dec 5, 2018

Quantitative Supply Chain For Fashion

Fashion brands are driven by novelty. This puts a lot of pressure on fashion supply chains to reduce overstocks, both to reduce the discount rates but also to make room for the new collections. Overstocks are typically caused by an incorrect prior forecast of the customer demand.

Nov 14, 2018

Service Level vs. Fill Rate

In supply chain, the service level defines the probability of not hitting a stock-out during the next ordering cycle. However, the fill rate defines the fraction of the customer demand that will be properly served. Service levels and fill rates are distinct, and should not be confused.

Nov 8, 2018

The Min/Max Inventory Method Doesn’t Work

The Min/Max inventory method defines two stock levels: first, a replenishment threshold, referred to as the 'min', and second, a replenishment target, referred to as the 'max'. Yet, despite its popularity, this method is not suitable for most modern supply chains.