Supply chain, targeting potential slow moving stocks

johan855johan855 Member Posts: 2 Contributor I
edited November 2018 in Help
I would like to explore, comment and share the application of RM for the detection of these sort of products (Obsolete and slow mloving stocks) on an industry, I've seen that RM's supply chain and logistics applications are not very popular other than forecasting so I find this subject quite interesting and important for modern day management.

Does anyone have any ideas on how to use RM for this?


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    MacPhotoBikerMacPhotoBiker Member Posts: 60 Contributor II
    Hi johan885,

    I'm not sure if this answers your question, but what I do in order to calculate slow moving or obsolete stocks is calculating their "sufficiency in weeks" which shows for every article for how many more weeks stock will last based on the last x months of sales.

    Another piece of information that I plan to add is this: I'll calculate the linear regression of the sales development, then the slope of the linear regression will show a sales tendency, increasing if slope is positive, decreasing otherwise.

    I stand to be corrected, but I don't think there are any "standard tools" that will tell you what's obsolete and what isn't, since this is a very subjective classification. I'd say you'll have to calculate a set of parameters yourself (like the above mentioned sufficiency and slope), and then filter your articles based on these parameters.

    I hope this helps.

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