Description
An effective and efficient solution to the provision of inventory control is provided by Rachem. Techniques of inventory control are discussed and evaluated: top-down and botton-up forecasting and the ROP (re-order point model). Top-down forecasting is viewed as providing insufficient benefits, and it is recommended that a bottom-up model be simple. Rachem has employed a modified ROP approach with success. Based on an analysis of mean consumption, it is based upon weekly deliveries with quarterly analyses and application of a statistical analysis technique to examine historical consumption.
