Question: Serial Correlation (MLR/Fourier) and Inventory Problems

Someone asked me a question about the impact of serial correlation (a forecast performance/error measurement) on Inventory problems.
In short, if someone consistently forecasts above, will they always have too much stock? Conversely if one consistently forecast too low, will they always have out of stocks?
On its face this seems right. However there always are buffers […]

Commercial Paper & Treasury Markets Impact on Supply Chain Performance

Every day treasurers and treasury departments look at their cash positions and, based upon what they need to do this week or this month (if they need cash), they go to the commercial paper market and ask to borrow, say $900,000 (for the day or week).
In exchange (as this is a loan) they pay […]

Performance Doesn’t Fall Far From The Tree

I am not sure if we should call this “organizational heredity” or some other term.  Regardless, we have found that when we have two populations of users to train; (1) supervisors and (2) the employees for whom the supervisor is responsible, we observe a interesting but consistent phenomenon.  Here is how it goes…
As part of […]