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February 1997, Article 6

February 1997, Article 6

The Supply Chain Approach to Planning and Procurement Management

The supply chain approach models stochastic events influencing a manufacturing organization's shipment and inventory performance in the same way that a mechanical engineer models tolerance buildup in a new product design. The objectives are to minimize on-hand inventory and optimize supplier response times.

by Gregory A. Kruger


Article 6 - feb97a6.pdf

Appendix I: Derivation of the Standard Deviation of Demand Given an R-Week Review Period - feb97a6a.pdf

Appendix II: The Expected Value and Variance of On-Hand Inventory when there are no Restrictions on Minimum Buy Quantities - feb97a6b.pdf

Appendix III: The Expected Value and Variance of On-Hand Inventory when there Are Restrictions on Minimum Buy Quantities - feb97a6c.pdf

Appendix IV: Incorporating SRT (Supplier Response Time) into the Safety Stock Calculations - feb97a6d.pdf

Appendix V: Derating the Service Level to Account for Reduced Periods of Exposure to Stock-outs as a Result of Minimum Buy or Economic Order Quantities - feb97a6e.pdf

Appendix VI: Estimating Weekly Demand Uncertainty from Monthly Data - feb97a6f.pdf

Appendix VII: Adjusting Safety Stock to Account for Yield Loss - feb97a6g.pdf


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