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The Next Step at Maximo Health Center Complex
Published in Bob Sproull, Matt Hutcheson, The New Beginning, 2021
Tom continued, “It is also possible that some companies will preorder inventory based on some type of forecast for the coming year, and this strategy only exacerbates the problem even more. At best, it is extremely difficult to forecast what a consumer may or may not buy. I’ve always said that forecasts are always wrong and the further into the future you make the forecast, the ‘wronger’ it will be. This problem is encountered at the manufacturing level and the retail level. Manufacturers will produce excess finished good inventory that must be stored at a great cost or sold to retailers at a discounted price. Because of the flaws in their forecasting methods, some stores are left with large amounts of inventory when new models or products are released. This becomes most visible when stores offer ‘year-end clearance sales’ or ‘inventory liquidation’ events. They guessed wrong with the forecast and have much more inventory than they can sell. In many cases because stores couldn’t get enough of the hot-selling product, they missed out on sales. Now they must sell any remaining inventory, sometimes at bargain prices, to generate enough cash to go buy more inventories for the coming year. This cycle of too much and too little repeats itself year after year.” Tom then said, “So, what’s the answer to this logistics dilemma?”
TOC’s Parts Replenishment Solution
Published in Bob Sproull, The Secret to Maximizing Profitability, 2019
Bob continued, “It is also possible that some companies will preorder inventory based on some type of forecast for the coming year, and this strategy only exacerbates the problem even more. At best, it is extremely difficult to forecast what a consumer may or may not buy. This problem is encountered at the manufacturing level and the retail level. Manufacturers will produce excess finished good inventory that must be stored at a great cost or sold to retailers at a discounted price. Because of the flaws in their forecast methods, some stores are left with large amounts of inventory when new models or products are released. This becomes most visible when stores offer ‘year-end clearance sales’ or ‘inventory liquidation’ events. They guessed wrong with the forecast and have much more inventory than they can sell. In many cases because stores couldn’t get enough of the hot-selling product, they missed out on sales. Now they must sell any remaining inventory, sometimes at bargain prices, to generate enough cash to go buy more inventories for the coming year. This cycle of too much and too little repeats itself year after year.” Bob then said, “What’s the answer to this logistics dilemma?”
The Attainability Order in Control Systems
Published in K. D. Elworthy, W. Norrie Evenitt, E. Bruce Lee, Differential equations, dynamical systems, and control science, 2017
The relation “≺” defines a preorder on the set X \ T. The equivalence relation defined above not only induces a partition of the state space X into equivalence classes ℋα (the holding sets), with a remainder set Τ (the transient set), as seen above, but also induces a partial order among the holding sets themselves:
Optimal control policies for assemble-to-order systems with commitment lead time
Published in IISE Transactions, 2019
Taher Ahmadi, Zumbul Atan, Ton de Kok, Ivo Adan
We contribute to the literature on ADI by providing the first results for using a preorder strategy in ATO systems. The benefits of acquiring and providing information about future demand are undeniable. We identify the conditions under which having information on future customer demand helps ATO systems in reducing component inventory levels without sacrificing high service levels. Not only the manufacturers of these systems, but also their customers, who provide information on the timing and quality of their future demand, benefit from the preorder strategy. Manufacturers of ATO systems can reduce their inventory levels, but still provide high-quality service to their customers. Hence, many companies in high-tech, car manufacturing and white good industry can benefit from the results of this study.