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How to improve Profitability / Return on Investment (ROI) / Inventory Turns thru Data-Driven Intelligent Business Planning (DDIBP)?
A simple way of thinking about this is that if you have too much of the wrong inventory and too little of the right inventory you are experiencing ‘bi-modal’ inventory distribution.
Too little of the right inventory causes stock outs, back orders, expedites and missed sales. It also has a very disruptive impact on your planning and manufacturing operations personnel. Too much of the wrong inventory results in excess cash and space being tied up in inventory that isn’t helping you service market demand.
To understand the essential difference between Re-order Point (ROP), Material Requirements Planning (MRP), Make-To-Availability (MTA) and Demand Driven Material Requirements Planning (DDMRP)
If you want to know the next generation of data-driven intelligent business planning (DDIBP), please feel free to enroll our on-line experiential learning workshop.