Supply Chain In 3 Minutes


Sep 29, 2021

Service level in 3 minutes

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.

Feb 10, 2021

S&OP in 3 minutes

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.

Nov 11, 2020

Lead time in 3 minutes

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.

Oct 7, 2020

Probabilistic Forecasting in 3 minutes

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.

Sep 2, 2020

Min/Max Inventory Method in 3 minutes

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.

Jul 22, 2020

Bill of Materials in 3 minutes

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.

Jun 24, 2020

Safety Stock in 3 minutes

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.

May 27, 2020

Inventory Turnover in 3 minutes

Inventory turnover is a popular inventory management concept that is used to determine the overall efficiency of an entire supply chain. The ratio reflects the number of times inventory is replaced during a given period of time, and can give a useful indication of both trends and how well a company controls its merchandise. Numerically, it is calculated as the ratio between the cost of goods sold, divided by the cost price of the average stock level over the same time period.

Apr 8, 2020

ABC Analysis in 3 minutes

ABC analysis is an inventory categorization method that provides a prioritization mechanism to concentrate efforts and resources on the items that matter most for a company.The method works by dividing items into categories based on their perceived importance and highlights the most frequently sold and consumed items so that resources can be allocated accordingly.

Mar 3, 2020

Seasonality in 3 minutes

We explore the basic idea of seasonality and learn how it can be confusing to keep track of due to factors such as noise. We explain the impact this can have and why computers are better than humans at predicting the future.