The Limitations of the Min/Max Approach - Ep 27 скачать в хорошем качестве

The Limitations of the Min/Max Approach - Ep 27

Full transcript: https://www.lokad.com/tv/2018/11/08/t... Many in the supply chain industry are bound by the capabilities of their ERP system. Often the Min/Max approach is hard coded into the software making it an approach that many companies rely upon. The method was developed as a visual way of managing stock levels with the primary benefit being its simplicity. However as one of the earliest automated replenishment methods to be used in inventory management software, this approach has its limitations. In this episode we explain why the method is geared towards simplicity rather than correctness and how ultimately through taking this approach you are on a path destined to failure. We explain why it doesn’t account for MOQ’s and why it works very poorly with multi-item constraints. We understand the first steps that a Supply Chain manager should take to improve their approach and debate why, even if a company has a min/max approach that is currently working, they should still take steps to move away from this method. ****** Episode Map 0:00:00 - Introduction 0:00:31 - What do Min/Max approaches actually entail? 0:01:45 - In addition to being simplistic, what other benefits does the Min/Max approach have? 0:02:30 - What are its limitations? 0:04:38 - So what are the real world problems that come from using this approach? 0:07:05 - If it’s such a “poisonous” approach, why is it incorporated in to so many ERP’s? 0:09:20 - A lot of companies are bound by Min/Max, what are the other available options? 0:12:00 - Is reverse-engineering an approach to recommend? 0:14:20 - What are the key differences between a Lokad and a Min/Max approach? 0:17:05 - Why should a company move away from a Min/Max approach if its working well enough? 0:18:59 - For a Supply Chain Manager, what would be the first steps to move away from a Min/Max approach? ****** Find out more: https://www.lokad.com/min-max-invento... Check out our website: https://www.lokad.com/ Follow us on LinkedIn:   / lokad   ******