K3S

Education Concepts

PE5 Checks

PE5 are items that did not reach the criteria for PE1 – PE4 but fell below their service level target last period.

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Education Concepts

PE4 Checks

PE4’s are products that are beginning to trend downward. The product may have lost customers, have a decrease in demand, or just a few periods of lower demand.

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Education Concepts

PE3 Checks

PE3’s are products that are beginning to trend upward. There could be a new customer, an increase in demand with a current customer, or just a few periods of spikes.

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Education Concepts

PE2 Checks

PE2’s are the opposite of PE1’s. These are items whose demand is much lower than the average in the previous period. Like PE1’s demand spikes, these dips in demand will occur from time to time. It is essential to understand that this is likely a rare occurrence and no change will be needed.

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Education Concepts

PE1 Checks

PE1’s are products whose demand is much higher than the average in the previous period. These spikes in demand will occur from time to time. It is essential to understand that this is likely a rare occurrence and you will rarely need to make a change. Changing the average every time there is a spike will throw off your inventory levels because the product’s demand will most likely return to normal. If you know the product will have increased demand in the future because of a new customer you can then adjust the average using the edit history function.

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Education Concepts

Understanding Overstock Analysis

Have you ever found it difficult to identify the overstock inventory in your warehouse? If you have then you are not alone. Many do not even realize the importance of overstock and how much it costs their company on a daily basis.

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Education Concepts

Economic Order Quantity

To understand the Economic Order Quantity, it is helpful to review the Order Cycle. The vendor Order Cycle represents a number of days between ordering. Order Cycle Analysis is one of the most significant components when it comes to the suggested order.

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