1. Replenishment

2. Pull It Scan It Capture It Send It Customer’s System Analyze Customer’s Needs Trigger Reorder Point Pull It Scan It Capture It Send It Ship It Distributor’s System Suppliers

3. Planner’s Replenishment Flow Chart Sales History Mathematical Forecasting ReorderLine Buy Decision Inventory Purchase Forecast Error Metric Goal: Minimize Safety Stock Sales, Marketing and Operations Goal: Improve Customer Service Combination Forecasting Collaborative Forecasting Goal: Accommodate Changing Customer Needs Goal: Automate Purchasing Goal: Minimize Landed Cost Planner’s Replenishment Flow Chart Sales History Mathematical Forecasting Reorder Point Line Buy Decision Goal: Minimize Purchase Forecast Error Metric Goal: Minimize Safety Stock Sales, Marketing and Operations Input Goal: Improve Customer Service Customer Input Combination Forecasting Collaborative Forecasting Goal: Accommodate Needs Goal: Automate Purchasing Goal: Minimize Landed Cost Goal: Minimize Inventory, Minimize Holding Cost, Minimize Procurement Cost, Maximize Fill Rates

4. Actual Sales Data Extract

5. 0 100 200 300 400 500 600 123456789101112 Actual DemandData Extract Sales Months

6. ActualForecastMAD January124120 February135140 March161165 April1781774.33 May3252053.33 June21022041.67 July21519543.67 August18017650 September15015511.33 October1201159.67 November1101114.67 December105903.67

8. ActualForecastBias January124160 February135155 March161140 April17815211.67 May190148-9 June210166-29.67 July215170-37.33 August180175-43.67 September150188-31.33 October120170-4 November11016827.67 December10516548.67

9. 0 50 100 150 200 250 123456789101112 Actual Demand Forecasted Demand Bias

11. ERP System Mathematical Modeling Planner Data Cleanup and Corrections Combination Forecasting Collaborative Forecasting Error Metrics Used as a Screen to the Next Level Decreasing Numbers of Items Forecasted

12. Supplier 4: High Average LT Low Variability Supplier 1: Low Average LT High Variability

13. Max Min Max Time To Reorder Min

14. Demand During Lead- Time Inventory Demand During Lead- Time Inventory Demand During Lead- Time Inventory Safety Stock Safety Stock Safety Stock Fill Rate Increases

16. Coordinated Replenishment

17. Distributors Chain Retailers Independent Retailers Finished Goods Warehouse Local Manufacturing Outsourced Manufacturing China/Pakistan LT 90-120 days Haiti/Dominican Republic LT 3 wks to 150 days Houston/Victoria LT 20-30 days Raw Materials Suppliers Raw Materials Suppliers Raw Materials Suppliers Raw Materials Suppliers Many Sources EDI and Fax Orders