Acquisition costs from a weekly order cycle can absorb profits. Overstock from unbalanced orders, bumped up to meet vendor minimums, can erase what’s left of your profit. Your forecast accuracy must be perfect when ordering weekly, or you will have lost sales. The combination of inaccurate forecast and overstocks will create the ‘bullwhip effect’ eating away your GMROI and inventory profits.
We optimize the order cycle by considering acquisition cost, admin fees, carrying cost, service goal, lost sales, vendor minimums, days of week to order, bracket pricing, shelf life, unit of measure variations ($,#,container, trucks, etc.), safety stock, lead time, multi-echelon dynamics (X-dock, direct, DC-Store) and product/location sales forecast over time (seasonality).
Are you tired of doing the same thing each week and getting the same results? Then Data Profits’ Inventory Optimization can help, providing you with the right way to grow profits.