Feb 13, 2010 13:35
14 yrs ago
English term
impact is on limits
English
Bus/Financial
Management
I am translating a presentation about measures to reduce working capital, i.e. to reduce powder coating inventories, reduce the quantity of aged products etc.
I can’t quite work out the meaning of this phrase with asterisks – ‘’impact is on*******limits’’ in slide 7. I understand that inventory exposure means risk involved in keeping inventories for (too) long.
Thank you
Slide 6
Recommendations - Planning
• Engage Sales and Production and Finalize then Publish the Rules on MTS vs. MTO (make-to-stock vs. make-to-order)
• Change time frame thinking from Months to Weeks – easier to implement small step improvements
• Develop Forecast based on history for Sales to review
• Set ROP (re-order point)based on demand history over the replenishment lead time horizon – new view.
– Work with IT to assist with a tool to provide this view
– Determine the best method to get a total European inventory view
Slide 7
Recommendations – Planning, continued
• For MTS:
– use Demand History to establish forecasts into SAP
– use Demand History to establish ROP
– use forecasts to potentially adjust ROP
– Only replenish inventory when actual inventory is below ROP, not if forecast drives calculated inventory below ROP (SAP setting?) – Demand pull system
– Set Batch sizes to 10 weeks of demand – impact is on*******limits inventory exposure
– Establish a process to continuously review ROP settings
– Stocking Agreement Management
I can’t quite work out the meaning of this phrase with asterisks – ‘’impact is on*******limits’’ in slide 7. I understand that inventory exposure means risk involved in keeping inventories for (too) long.
Thank you
Slide 6
Recommendations - Planning
• Engage Sales and Production and Finalize then Publish the Rules on MTS vs. MTO (make-to-stock vs. make-to-order)
• Change time frame thinking from Months to Weeks – easier to implement small step improvements
• Develop Forecast based on history for Sales to review
• Set ROP (re-order point)based on demand history over the replenishment lead time horizon – new view.
– Work with IT to assist with a tool to provide this view
– Determine the best method to get a total European inventory view
Slide 7
Recommendations – Planning, continued
• For MTS:
– use Demand History to establish forecasts into SAP
– use Demand History to establish ROP
– use forecasts to potentially adjust ROP
– Only replenish inventory when actual inventory is below ROP, not if forecast drives calculated inventory below ROP (SAP setting?) – Demand pull system
– Set Batch sizes to 10 weeks of demand – impact is on*******limits inventory exposure
– Establish a process to continuously review ROP settings
– Stocking Agreement Management
Responses
+1
8 mins
Selected
typo, impact is on limits OF...
Should read: "impact is on limits of inventory exposure": this affects the limits (i.e. time limits) for which the inventory can be exposed.
4 KudoZ points awarded for this answer.
Comment: "Thank you, Jack!"
14 mins
result or effect is on limiting inventory exposure
Reading Slide 6, it talks about Planning shorter time frames and forecasting sales based on history etc., and Slide 7 is a continuation of 6. Since it is recommended in 6 that the time frame should be changed from months to weeks and replenishing inventory when the actual inventory is below ROP, this means that one should not stock unnecessary inventories based on your own feeling or hunch, but rather data collected in the past. Setting batch sizes to 10 weeks of demand, and this will result in or have an effect on limiting inventory exposure, which means that this would influence in a way that unnecessary inventory would not be stocked.
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