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 […]

Dateline Wall Street: Have you Seen Your Inventory Bottom Line Lately?

What happens when credit markets squeeze companies? How does it impact the supply chain?
Big Time.

When credit was cheap, inventory didn’t cost just as much. Now, inventory costs have increased due to the added cost of borrowing. In financial terms, it just got a whole lot tougher to manage working capital. Executives are […]

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 […]