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WHYANALYZEWORKS

ANALYZE TypesofBuffers

todaysworldagreatdealof

en,onisgiventosizingand

ca,ngphysicalinventory

uffers.Inventorybuffersserve

wopurposes.Firstthey

bsorbthevariabilityin

ustomerdemand.econd

heyaccountforthevariabilitythe,methatittakesto

eplenishthoseinventory

uffers.Demandissa,sfied

omphysicalinventorybuffers

hicheffec,velydecouples

ariabilityindemandfrom

ariabilityinsupply.Iden,fying

hemaximumexpectedemandduringtheTimeto

eliablyReplenish(TRR)

rovidescontextinwhichto

elatechangesininventory

velstostockouts.

hesolu,onistoANALYZEventorylevelsusing,me

aseddemandpaernstosee

heriskofstockoutsinrela,on

ovariabilityindemandand

upply.

TherearethreecategoriesofbuffersintheTheoryO

Constraints(TOC):(a)Timebuffers(b)spacebuffers

and(c)physicalinventorybuffers.Timebuffers

protectthe,melinessofdeliveryinsupportof

execu,onmanagement(formoreinforma,ononho

theONEnumberprioritysystemcanenhanceyour

execu,onmanagementseetheMANAGEcapabilitythe).pacebuffersensureth

spaceisnotthelimi,ngfactortoflow.Physical

inventorybuffersensurevariabilityincustomer

demandcanbeeffec,velysa,sfiedwhiletakinginto

accountvariabilityinthe,metore-supply.

DeterminethelevelofInventoryrequired

tomeetDemandduringtheTimeto

ReliablyReplenish(TRR).

ANALYZEprocesseshistoricalorforecasteddemandthroughconsecu,ve

windowsofTimetoReliablyReplenish(TRR)inordertoproducewhatare

called,mebaseddemandpaerns.Timebaseddemandpaernsarewhatenablepaernrecogni,ontoplayakeyroleinassessinginventorylevelsin

rela,ontothelevelofriskassociatedwithstockouts.Theresultisasimple

easytolearneasytouseprocessforassimila,ngthetradeoffsbetween,me

demandriskandinvestmentwhenestablishinginventorylevelsandcustom

fillrates.

PhysicalBufferSize=TheMaximumexpected

demandduringtheTRRyieldstheLowestlevel

ofstockouts.

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a new powerful pattern recognition

method for managing inventory by

properly sizing physical buffers.NALYZENALYZEallowsyoutousepa8ern

cogniontodeterminethebest

ffersizethatproducesthehighestlesandhighestinventoryturnoverby

sfyingdemandwithoutvariability

ngintheway.Byanalyzingactual

mandvariabilityinconjunconwitha

metoReliablyReplenish(TRR)

NALYZEprovidesaclearpictureof

ventoryconsumponthroughme.

ANALYZEusesapatentedprocessthatgivesyoutheabilitytoperformwhat-ifscenariostoiden,fy

buffersizesbasedondemandvaryingdegreesofriskandreplenishment,ming.Establishinganactua

andNOTaveragedemandpaernprovidesamorerealis,cassessmentofinventorylevelsinrela,o

tostockouts.ANALYZEsynthesizescomplexdataandcomputa,onalalgorithmsprovidingasmooth

interac,vesolu,onpungyouinchargebyprovidingabeerunderstandingofhowtheinventory

strategyaffectsworkingcapitalandprofitability.

Provideforeachitemtobebufferedhistoricalor

forecasteddemanddata(i.e.actualorderstartdate

actualorderfinishdateorderquan,tyactualissue/ship

dateshipquan,ty)forallordersprocessedintheuser

definedDemandDateRange

WhatitTakestoRunANALYZE

WhatYouAlreadyHaveinPlace WhatYouwillNeedtoDo

q EstablishReliable(NotAverage)LeadTimes(LT)and/orTimes-to-ReliablyReplenish(TRR);i.e.aplannedperiod

of,mebetweentheplacementandreceiptofanorder

thatiso@engreaterthanandseldomlessthantheactu

,merequiredforeachorderplacedtobecompleted

q Minimizethebatchingofordersbyplacingreplenishmeordersinaccordancewiththe,ming(e.g.daily)and

quan,ty(e.g.dailytotal)oftheitemissued(orsold)fro

inventoryq Maintainapredeterminedmaximumquan,tywhether

beininventoryoronitswaybacktobeingininventory

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FINDOUTMORETolearnmoreabout

the

capabili,esof:

ANALYZEMANAGE

IMPROVE

PLAN

CHEDULE

andhowANALYZEcanpu

youincontrolofimprovinyourinventory

management;contactyou

AGIrepresenta,vetodayo

visitwww.goldra.com.

UA:(203)624-9026

ANALYZEBuffersizingusingme-baseddemandpa8erns.

THEBIGINVENTORYMANAGEMENT

PROBLEMS

OUT-OF-STOCK &WORKINGCAPITAL

Workingcapitalisapreciousresourceforcompanies.Unwiseuseofworkingcapitallimitsanorganiza,onsabilitytomeetshort-termfinancialcommitmentsand

accomplishlong-termplans.Itisimportanttounderstandtheimpactofinventory

onworkingcapital:toomuchslowmovinginventoryreducestheeffec,venessof

workingcapitalwhilenotenoughfastmovinginventorymeanslostsalesreducing

theinfluxofnewmoney.Theques,onsofhowmuchinventorytoholdandwheretoholditplayavitalroleintheshortandlongtermfinancialhealthof

organiza,onsandintheabilityoforganiza,onstomeetcustomercommitments.

Outofstocksitua,onswhethervendormanufacturerwholesalerorretailercandevastateanorganiza,onsreputa,onwithcustomers.Asidefromtheserious

mpactonworkingcapitalpoorinventoryplanningandexecu,onleadstopoor

boomlineperformance.Inventorymanagementmethodsshouldprovidetheabilitytoiden,fydemandpaernvariabilityanditsrela,onshiptostock-outswhen

determiningop,mallevelsofstock.ANALYZEprovidestheabilitytoaccountfor

bothdemandvariabilityandsupplierperformancewhendetermininginventory

evelsinrela,ontostock-outsandworkingcapital.

Thebestwaytoimproveinventorymanagementistoimprovenventoryeffec,venesswhilereducingout-of-stocks.

ANALYZEspatentedinventorymanagementsystemconvertsdiscreetcustomer

demandinto,me-baseddemandpaerns.Time-baseddemandpaernsprovide

visibilityintowhereandwhendemandvariabilityinconjunc,onwithsupplier

performanceruntheriskofout-of-stocks.Theresultishigherfillratesincreased

nventoryeffec,venessandimprovedcashflow.

Copyright2007-2013AvrahamY.GoldraIns,tuteLPAllRightsReserved.

and

areservicemarksortrademarksoftheAvrahY.GoldraIns,tuteLPintheUnitedtatesa

othercountries.

U..PatentNo.8433592andJapanesePate

No.5039025forANALYZE.

U..PatentNo.8401905andForeignPatent

PendingforMANAGEandIMPROVE.

U..andForeignPatentsPendingforPLANan

CHEDULEmodules.

Datacontainedinthisdocumentservesinforma,onalpurposesonly.Na,onalproduc

specifica,onsmayvary.

Thesematerialsaresubjecttochangewithouno,ce.ThesematerialsareprovidedbyThe

AvrahamY.GoldraIns,tuteLPanditsaffili

companiesforinforma,onalpurposesonly

withoutrepresenta,onofwarrantyofanyki

andTheAvrahamY.GoldraIns,tuteLPsha

notbeliableforerrorsoromissionswithresp

tothematerials.Theonlywarran,esforthe

AvrahamY.GoldraIns,tuteLPgroupofproductsandservicesarethosethataresetf

intheexpresswarrantystatementsaccompanyingsuchproductsandservicesif

Nothinghereinshouldbeconstruedascons,tu,nganaddi,onalwarranty.