Demand-Driven Inventory Optimization and Replenishment Creating a More Efficient Supply Chain -- Contents -- Foreword -- Preface -- Acknowledgments -- CHAPTER 1 Creating Demand-Driven Supply -- THE PATH TO DEMAND-DRIVEN SUPPLY -- SHIFTING FROM SUPPLY-DRIVEN TO DEMAND-DRIVEN METHODOLOGIES -- So You Think You Can Do Better? -- MOVING TO A DEMAND-DRIVEN SUPPLY -- CREATING MY ISLAND OF EFFICIENCY -- WHAT IS AN ISLAND OF EFFICIENCY? -- The Intended Island of Efficiency -- The Unintended Island of Efficiency -- NOTES -- CHAPTER 2 Achieving Timely and Accurate Responses to Customer Demand -- PUSH AND PULL SUPPLY CHAINS -- ENTER TOYOTA AND THE KANBAN SYSTEM -- FROM KANBAN TO JUST-IN-TIME PRODUCTION -- WHAT IS NEEDED FOR A JIT SYSTEM TO WORK EFFICIENTLY? -- A BROADER VIEW OF JIT/KANBAN IN ACTION -- THE KNOWN DEMAND BECOMES THE PREDICTABLE DEMAND -- THE JIT PRODUCTION SUPPLY CHAIN WEAKNESSES BECOME AMPLIFIED IN THE DISTRIBUTION CHAIN -- SOME DISTRIBUTION ISSUES -- THE CUSTOMER PUSHES BACK -- THE SQUEEZE IS ON -- CREATING AN EFFICIENT SUPPLY CHAIN USING JIT FUNCTIONALITY -- PUSH-PULL TIPPING POINTS -- IN SEARCH OF TRUE DEMAND -- NOTES -- CHAPTER 3 Just-in-Time and Enterprise Resource Planning Rise Together -- DENORMALIZED TABLES -- SEQUENTIAL OPTIMIZATION -- UPSTREAM SERVICE LEVELS -- ACCUMULATED DEMAND VARIANCE -- MULTIPLE HIERARCHIES OF SERVICE LEVEL REQUIREMENTS -- THE EFFECTS OF ERP SHORTCOMINGS -- The Result of Performing High-Powered Analytics and Optimization with Normalized Tables -- SHIFTING COSTS ON A BALANCE SHEET -- MOVING THE FOCUS AWAY FROM INVENTORY TO REPLENISHMENT -- Segmentation -- Monitoring -- Reacting -- THE LONG TAIL -- MAKING MISTAKES FASTER -- WORKING WITH ONE HAND TIED BEHIND YOUR BACK -- SO, HERE WE ARE -- NOTES -- CHAPTER 4 How Does Days of Supply Wreak Havoc on the Supply Chain? -- RULE-OF-THUMB DAYS/WEEKS OF SUPPLY EXPOSED.

INEFFICIENCIES OF RULE-OF-THUMB DAYS OF SUPPLY -- TURNING DAYS OF SUPPLY ON ITS HEAD -- CREATING THE EFFICIENCY ENVELOPE -- THE JOURNEY, SO FAR -- NOTES -- CHAPTER 5 What Will You Accomplish with Inventory Optimization? -- HOW DOES INVENTORY OPTIMIZATION IMPROVE THE ERP SYSTEMS? -- DEVELOPMENT OF THE INVENTORY POLICIES AND REPLENISHMENT PLANS -- THE NETWORK STRUCTURE -- THE SERVICE LEVEL -- THE LEAD TIME AND LEAD-TIME VARIANCE -- ORDERING RULES -- DEMAND -- DEVELOPING POLICY OUTPUTS -- The Single Echelon -- The Two-Echelon Distributions -- The Multi-Echelon Distribution with Replenishment -- CHAPTER 6 Fitting Unlimited Optimization into a Constraining World -- THE PRESENT STATE OF AFFAIRS IN REPLENISHMENT PLANNING -- HOW ALERTS TAKE ON MORE SIGNIFICANCE WHEN CUSTOMER SERVICE IS PARAMOUNT -- TIME -- SPACE -- THE COMINGLING OF DEMAND -- THE SHORT SUPPLY OR ALLOCATED PRODUCT -- WHERE DOES "OPTIMIZED" REPLENISHMENT NEED TO GO IN ORDER TO ENCOMPASS THE ENTIRE DISTRIBUTION CHAIN? -- THE UPSTREAM REACTION -- MOVING UPSTREAM REACTIONS INTO REAL REPLENISHMENT -- Turn Volume versus Promotional Volume -- The Single-Source/Single-Delivery/Short-Term Event -- The Single-Source/Single-Delivery/Long-Term Event -- The Multi-Source/Multi-Delivery/Single Event -- REPLENISHMENT AS A MEANS TO INVENTORY OPTIMIZATION HARMONY -- CHAPTER 7 Reviewing the Three Proof of Value Engagements -- PROVING THAT INVENTORY OPTIMIZATION IS A GOOD BUSINESS RATIONALE -- THE GOOD: WHEN PROOF OF VALUE ENGAGEMENTS WORK -- Setting up the Proof of Value -- The Results -- THE BAD: WHEN PROOF OF VALUE ENGAGEMENTS DON'T WORK -- Viewing the POV from a Project Management Perspective -- Viewing the POV from an Analytical Perspective -- The Results of the POV -- Looking Back -- THE BEST: A COMPLETE PROOF OF VALUE ENGAGEMENT -- Enhance versus Replace -- The POV Assessment -- The Goals of the POV.

PROOF OF VALUE STEPS THAT LEAD TO SUCCESS -- The POV Process -- A DIFFERENT PRODUCT PERSPECTIVE -- THE EYE-OPENING MOMENT: DISCOVERY AND INSIGHT -- WHY THE ERP SYSTEM HAD TROUBLE WITH MOST OF THE MRO PRODUCTS -- SIMULATION OF THE REPLENISHMENT POLICIES -- SIMULATION OF THE PRESENT "ERP/SCM MODULE" REACTION -- SIMULATION OF THE OPTIMIZATION SYSTEM -- THE EFFECT OF POLICY -- How Big an Effect Can This Policy Change Have? -- POV RESULTS: INVENTORY OPTIMIZATION ENHANCES THE ERP SYSTEM -- HOW LONG WILL IT TAKE TO ACHIEVE THE REDUCTIONS? -- WERE THERE IMPROVED BUYER EFFICIENCIES? -- LOOKING BACK -- CHAPTER 8 Inventory Optimization in the Real World: Matas A/S -- MATAS A/S: AUTOMATED FORECASTING AND REPLENISHMENT -- WHAT WERE THE PROBLEMS AT MATAS? -- DC REPLENISHMENT -- STORE REPLENISHMENT -- A PROJECT IN INVENTORY OPTIMIZATION -- The Matas Requirements -- The Requirements of Matas -- A PILOT PROGRAM VERSUS A PROOF OF VALUE PROCESS -- ROLLING THE PROJECT OUT TO THE ENTERPRISE -- THE MATAS NETWORK -- A CLOSER LOOK AT THE OPTIMIZATION PROCESS -- Forecasting -- Inventory Optimization -- Operations Research Segmentation -- Business Rules -- THE ULTIMATE MATAS GOAL -- THE MATAS RESULTS -- REFLECTIONS ON THE PROJECT -- CHAPTER 9 A Consultant's View of Inventory Optimization -- WHO IS ANDERS RICHTER? -- Tell Us a Bit About Yourself -- What Does an Inventory Optimization Project Look Like? -- How Is the Project Split Up for Best Results? -- Are There Any Learnings You Can Pass on from Your Experience Installing Inventory Optimization? -- What Kinds of Information Are Required from a Customer to Ensure a Good Installation of Inventory Optimization? -- What Happens If the Customer Is Lacking in Certain Data Requirements? Are There Ways to Work around the Problem? -- What Creates Complexity in Doing an Installation?.

Tell Me about the Typical Problems and Hurdles You Have to Overcome When You Are Dealing with Forecasting -- How Do Those Problems or Hurdles Translate into Inventory Optimization? -- Have You Run into Times When the IO Output Has Problems at the Start of the Project? What Did You Do to Overcome Those Problems? -- How Much Time Is Spent Onsite versus Offsite When Developing the Project? -- When It Is Not Possible to Be Onsite the Whole Time, Where Should You Focus Your Onsite Time? -- What about Project Management in IO Implementations? -- IN CLOSING -- NOTE -- CHAPTER 10 Pulling It All Together -- ALIGNING THE INVENTORY OPTIMIZATION GOALS TO CORRECT DEEP-SEATED BUSINESS ACTIONS IN A COMPANY -- INVENTORY OPTIMIZATION CAN'T DO WHAT WAS DONE BEFORE -- HOW TO CHANGE THE PLAYING FIELD -- OVERARCHING BUSINESS ISSUES IMPEDE POSITIVE INVENTORY CONTROL -- Supply Chain Organization -- Supply Chain Network Design -- Customer Service Policies -- Safety Stock Policies -- Degrees of Freedom for Inventory Decisions -- Management of Tradeoffs -- SUPPLY CHAIN INVENTORY STRATEGIES BENCHMARK REPORT RECOMMENDATIONS -- IN CLOSING -- NOTES -- Epilogue -- About the Author -- Index.