1
Chat with a warehouse lead last month changed how I look at inventory buffers
He told me they keep 15% extra stock on hand for just one part number and it cut their downtime by 40%, so now I’m wondering if I’ve been overcomplicating my whole reorder system.
2 comments
Log in to join the discussion
Log In2 Comments
tara_palmer1mo ago
15% buffer on one part number is a pretty narrow fix for what sounds like a broad system issue. You mentioned it cut downtime by 40% but did he tell you what their actual fill rate was before they added that extra stock? If they were running at 70% service level and jumped to 95% on that one part, sure that looks good on paper but it hides the real problem. What about the other 99 parts they stock, are they all running with zero buffer and causing chaos? Most shops I have seen that brag about a single win like this are covering up a mess of wrong lead times and bad demand forecasts. You might actually be complicating your system because you are chasing a number that worked for one specific situation.
6
wesleyburns1mo ago
Covering up a mess of wrong lead times" - that hit home, I read something similar in a logistics blog that said most buffer stock just masks bad planning. @tara_palmer makes a good point about the other 99 parts, one number working doesn't mean the whole system is right.
1