Seven Benefits to Flat Supply Chain Costs around the Optimum

By Edith Simchi-Levi
d7875dd9 54ae 4e85 9902 e81840012e35 Seven Benefits to Flat Supply Chain Costs around the Optimum

End to end optimization provides a way to take into account tradeoffs in the supply chain. These are typically between cost and service taking into account many factors that influence the design and flow of the supply chain. The advantage of taking an optimization approach is that provides a “what’s best” solution that can help reach the efficient frontier thereby reducing costs while maintaining service levels.

The most common applications are network design and inventory optimization. Supply chain risk, revenue management, asset utilization and other goals can be pursued in a similar fashion.… READ MORE

The Vice President and the SHED

By Jeff Speakes

In order to better understand the state of household finances, the Federal Reserve has recently conducted a special survey called the Survey of Household Economics and Decision making, or SHED. This is in addition to the tri-annual Survey of Consumer Finances. Key findings from the SHED include the following: (a) most families indicate that they are “doing okay” or “living comfortably,” (b) still, about one in three families felt they were financially worse off than they were five years ago, (c) only about half of the respondents were putting some of their income away in savings, and the median savings rate of the savers was 10% of income, and finally, (d) only about one in four households was actively preparing for retirement.… READ MORE

Calculate Order Cycles for Key Vendors

By Jon Schriebfeder

To avoid a possible stockout, a product should be ordered as soon as its replenishment position or net available quantity (i.e., On-Hand – Committed on Current Customer Orders + Current Replenishment Orders) falls down to its reorder point or minimum stock quantity. That is, a quantity sufficient to meet customer demand during the lead time (plus some safety stock or reserve inventory). Unfortunately, vendors often do not accept purchase orders that just contain one product. Even if they do, the terms they offer for a small order probably prevent you from competitively selling the item.… READ MORE

Book Cover Contest – What Do You Think?

As promised, below are the reader submissions for an improved book cover for my book, How to Fail…

The images are small and fuzzy because my blog software was invented in the sixties. I hope to have that solved soon. But it probably doesn't matter for this purpose because I'm looking for your visceral reaction. Assume the text is the same on all versions.

Do any of the proposed covers look better than my original that appears at the top of the list?… READ MORE

IBS America Exhibiting at AIAG Quality Summit – Sept 24 & 25

By IBS America

2014 Quality Summit – Quality for Emerging Technologies

Stop by and visit us at booth #27! This year’s theme is “Quality for Emerging Technologies” – Don’t miss this event!

New technologies are beginning to pose challenges in traditional testing, measurement and quality assurance. This year’s summit will showcase how companies are assuring quality, reliability and customer satisfaction in the latest electronics and software products, adapting proven processes and developing new quality methods and tools. The 2014 Quality Conference — Quality for Emerging Technologies taking place at Suburban Collection Showplace.… READ MORE

The Shit Sandwich Generation

I call my generation the Shit Sandwich Generation. That's because when I was a kid the most important people in the family were the adults. That was the cultural norm. By the time I became an adult, eager for my time in the sun, society in the United States decided that kids were the top priority.

I can see why the shift happened. Life got complicated, and dangerous, and more competitive, so it was no longer feasible to raise “free range” kids the way my generation was raised.… READ MORE

Q&A on the Supply Chains to Admire

By Lora Cecere
SCI va Gartner1 Q&A on the Supply Chains to Admire

Today we published a new report, Supply Chains to Admire. It is the end of a two-year research project, and identifies which publicly held companies outperformed their peer group on balance sheet results. Here we share the answers to the questions that we get the most often about this research:

What is the source of data? The data analyzed to compile the Supply Chains to Admire 2014 report came from publicly-available information from balance sheets and income statements.… READ MORE

Q&A on the Supply Chains to Admire

By Lora cecere
SCI va Gartner1 Q&A on the Supply Chains to Admire

Today we published a new report, Supply Chains to Admire. It is the end of a two-year research project, and identifies which publicly held companies outperformed their peer group on balance sheet results. Here we share the answers to the questions that we get the most often about this research:

What is the source of data? The data analyzed to compile the Supply Chains to Admire 2014 report came from publicly-available information from balance sheets and income statements.… READ MORE

Can you trust supply chain analytics with imperfect data?

By Edith Simchi-Levi
0f76f6c4 5dbc 4450 9268 14720bb975e4 Can you trust supply chain analytics with imperfect data?

Data-driven decision making is all the rage with the wide-range availability of data and analytics methods to glean better associations, predictions and recommendations. But one of the challenges is still matching the data available to the one needed for analytics. A recent New York Times (NYT) article on the challenges of data wrangling noted that “Data scientists, according to interviews and expert estimates, spend from 50 percent to 80 percent of their time mired in the mundane labor of collecting and preparing unruly digital data, before it can be explored for useful nuggets.”

In the operations area, many strides have been made to consolidate master data through Enterprise Resource Planning (ERP) systems, allowing for a single source of truth and providing more real-time updates.… READ MORE

The NFL Punches Ray Rice's Wife

Warning: This blog is written for a rational audience that likes to have fun wrestling with unique or controversial points of view. It is written in a style that can easily be confused as advocacy for one sort of unpleasantness or another. It is not intended to change anyone's beliefs or actions. If you quote from this post or link to it, which you are welcome to do, please take responsibility for whatever happens if you mismatch the audience and the content.… READ MORE

Sports are Broken

Most sports were invented years ago. But much has changed since then. Equipment technology has improved. We have far more knowledge of health risks. Our attention spans have shrunk, and our options for leisure activities have increased. If you were to invent the rules of sports today, from a blank slate, you would do a lot of things differently.

For example, when tennis was invented, serving was just a way to start the rally. One player bunted the ball into the service box and it was on.… READ MORE

ISO 9001 as a Leadership Tool

By Mary McAtee
We Can Do it Together resized 600 ISO 9001 as a Leadership Tool

Not long ago I wrote about people’s attitude and work ethic. I think Labor Day is a good time to take a look at how and why people extend themselves as part of how they approach their work.

The US Department of labor just published the top reasons that employees considered their work place a positive experience. I was surprised that compensation and benefits barely made the top five reasons. I guess I shouldn’t be so surprised that was the number one reason for a positive experience was co-workers and feeling a part of something greater than themselves, a team.… READ MORE