Demand–Driven Inventory Optimization and Replenishment: Creating a More Efficient Supply Chain

The Authority on Synchronizing a Supply Chain to Customer Demand Updated and Expanded

In this expanded Second Edition of Demand–Driven Inventory Optimization and Replenishment, global expert Robert Davis takes his peerless coverage of inventory optimization further to address how it affects specific business verticals through improved metrics.

This new edition delivers a solid groundwork of fundamentals and best practices proving optimized inventory and replenishment solves in–system weaknesses preventing supply chain excellence, including reducing inventory carrying costs, waste, and working capital. Then, it digs into all new material on:

Inventory performance, scenario updates, and replenishment Best practices for optimizing balance between supply and demand in any vertical Up–to–date case studies looking at how optimized inventory and replenishment works at companies all over the world in the retail, high–tech, men′s clothing, and food industries Revealing examples of promotional product flow hurting supply chains

Demand–Driven Inventory Optimization and Replenishment, Second Edition is your reliable guide to getting your supply chain ready for everyone to see.

Preface xi

Acknowledgments xiii

About the Author xv

Chapter 1 Creating Demand–Driven Supply 1

Chapter 2 Achieving Timely and Accurate Responses to Customer Demand 19

Chapter 3 Just–in–Time and Enterprise Resource Planning Rise Together 43

Chapter 4 How Does Days of Supply Wreak Havoc on the Supply Chain? 67

Chapter 5 What Will You Accomplish with Inventory Optimization? 87

Chapter 6 Shifting the Focus from an Algorithm Discussion to a Business Discussion 109

Chapter 7 Fitting Unlimited Optimization into a Constraining World 139

Chapter 8 Reviewing the Three Proof of Value Engagements 159

Chapter 9 Inventory Optimization in the Real World: Matas A/S 193

Chapter 10 The Strategic Value Assessment 217

Chapter 11 A View of an Inventory Optimization Installation 233

Chapter 12 Inventory Optimization in Supply Chain Verticals 253

Chapter 13 Pulling It All Together 275

Epilogue 291

Index 295

ROBERT A. DAVIS is a Principal Product Manager in the Supply Chain Management Solutions group at SAS Institute. Prior to joining SAS, Davis worked for over twenty years with Nestlé and ConAgra in their Grocery Products Divisions. During that time, he helped develop best practices in account management, trade spending analysis, and replenishment planning. He has been recognized with national awards for excellence in sales and business management. At SAS, he has helped develop expertise in supply chain cost analysis in the fast–moving consumer products industry, inventory optimization, service parts optimization, and sales and operations planning. He is a recognized global expert in multi–echelon inventory and replenishment optimization.