How do planners build risk assessment into our S&OP processes? Some tools might include a risk register, SWOT analysis, probability and impact matrix, a tornado diagram, modeling and simulation, probabilistic analysis, or expert judgement. Here are results from the survey we took in January 2023.
Continue readingTag: Covid-19
How Much is Enough -Without Being Too Much?
How much should I make when demand is uncertain? How much should I order? How much is too much when inventory has a shelf life after which it is no longer usable or sellable?
These are uncertain times. For many industries, past sales are no longer valid in predicting future demand. At least not until the economy gets back to a new normal after the pandemic. Demand is way down, or even completely gone in some industries (such as foodservice and travel). Demand is way up or at record levels in other industries (such as PPE and cleaning products).
This is the first in a series of blogs on the topic of lot sizing to determine optimal batch quantity for production or ordering in uncertain times. I’ll explore some of the historical methodologies and some of the newer philosophies. My focus is on adapting these methodologies and philosophies for products with finite shelf life when demand is uncertain.
Continue reading
The Great Sequestration
Yesterday the President of the United States extended nationwide social distancing guidelines for another 30 days. Our lives and our supply chains are disrupted not only by the pandemic, but also the resulting Great Sequestration. How should our supply chains adapt to these times and prepare for what comes next?
As most everyone else is, I am sequestered at home, washing my hands frequently, and just going out for essentials. While I’m sequestered, I’m also thinking about how this is going to impact the companies and industries I regularly work with. Not only how to manage the current disruption, but also how to prepare for the future.
After being in touch with multiple clients and industry organizations, I see three essential components to success when coming out the sequestration. It doesn’t matter whether you are in Senior Management, Demand Planning, Supply Planning, Procurement, or anywhere else in the supply chain, these three things will be essential in how well you weather this crisis.
Continue reading