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Some thoughts on Safety Stock

Safety stock is normally required by companies to ensure that they have sufficient quantities of material in stock. The safety stock is there to provide coverage for unexpected customer demand, damage in the warehouse or required due to quality issues found in production. However, there are situations where companies do not require inventory to be in stock. These “out of stock” situations should not be confused with the highly undesirable “stock-out” …

Dabbawalla = Supply Chain Accuracy

The word “Dabbawalla” translates to dabba = lunch box, and walla = man or the ‘lunch box man’. It is a 125 year old trade formed by a unique and incredible network of 5,000 men with the complex task of delivering 200,000 homemade lunches each day from suburban homes to downtown offices in the city of Mumbai… all within a period of approximately 3 hours! That’s about 65 million ‘dabbas’ a …

What is an “EDI” Provider?

WHAT IS AN EDI PROVIDER? This is a common question asked by companies who are looking for an organization to manage or provide all or a portion of an EDI solution. In its most basic form, an EDI Provider should be able to connect to your trading partner on your behalf and provide you with some capability to interact with that trading partner. That interaction with your trading partner could be …

Retail Math Formulas We Keep Coming Back To

Each of the components required for the use of retail math are carried in within EDI documents traded between retailer and manufacturer (Supplier) with few exceptions.  While there is some argument within industry segments as to terminology and formulas – these are common.

Average Inventory
Average Inventory (Month) = (Beginning of Month Inventory + End of Month Inventory) ÷ 2

Basic Retailing Formula
Cost of Goods + Markup = Retail Price
Retail Price – Cost of …