Innovation

The Cost-Weighted Back-Order Method

Red Cube analysis and ongoing outputs enable Inventory Planners and Managers to move from a reliance on old-fashioned demand satisfaction to the Cost-Weighted Back-Order approach.

The flaw with demand satisfaction methods is that the impact of shortage when a demand is not satisfied (known as Dues-out or Back-Orders) is not properly addressed.  Minimising Back-Orders by reference to their actual cost-risk provides a truly optimum result.

Based on a 3-dimenisional and 4-dimensional analysis from Red Cube inventory planners are able to focus procurement and replenishment on the items that are most likely to impact operational availability if a back order were to occur. As a result back orders are minimised whilst operational performance is improved. In other words, an optimum inventory mix is both achieved and maintained.

The IO Cost-Weighted Back-Order® algorithms have proved so effective at delivering improved inventory performance that Inventory Optimisation Ltd are able to contractually guarantee results.

Jones resigned because she cheap essay writing service using writemypaper4me.org inflated her qualifications