Using DDMRP to detect the Appropriateness of store’s inventory formula of Company A and extend their application
|關鍵字:||服飾業;DDMRP;TOC;庫存改善;apparel industry;DDMRP;TOC;replenishment strategy|
Today, the competition of apparel industry is much sharper than before. Therefore, those apparel supplier start to focus on how to effectively reduce inventory cost. As known, the apparel replenishment strategies based on TOC that have been place for years and also have well performance. The company A has also formulate its replenishment formula based on TOC, but those store’s manager always consider that the strategies are unreasonable. They prefer to use their experience rather than the formula. In order to find the reason why those manager refuse to use the formula. First of all, we compare raw data and the data in full accordance with the company A’s formula. Secondly, we use the well-performed DDMRP to testify the formula of A company suitability based on comparing the data in full accordance with the DDMRP’s formula to the data in full accordance with the company A’s formula. When we analysis the formula of company A, we found the initial stock still based on the managers experience. As such, we analysis the raw data and find out some rules that the manager can follow when deciding the initial stock.