Every supply chain manager will testify that there’s a constant struggle to manage inventories in the supply chain. You must have enough inventory to prevent stock-out
on one hand, yet minimize the cost of inventory
on the other. However, we cannot maintain both a high inventory system and a low inventory system at the same time, it just doesn’t make sense.
Inherent Simplicity’s Stock Management solutions operate based on actual real-time demand. Instead of wasting time and resources on forecasting, we believe in continually analysing actual demand in order to fulfill the concept of “manage to availability” with Dynamic Buffer Management.
The primary objective of stock management is to have good availability of all items at all consumption points. The TOC solution is based on constant renewal of the consumed stocks (pull distribution), whilst readjusting the inventory targets on a daily basis.