by Gary J. Naples » Mon Aug 22, 2005 7:56 pm
CTB,
First of all, if you haven't already done so, prior to changing your ROP/BSL settings you should make some calculations based on your order cycle--frequency of order, ship time, receiving/stocking time, etc. to determine a planned starting point. Even if you are on a daily order initially calulate using a weekly frequency.
All too often adjustments are made to days supply without consideration to these factors. Once you have a calculated days supply you can then manipulate it per movement source to find the optimum settings (no over stock and not running out of parts.)
Secondly, I'd have to agree with Chuck and Johnny o, having isolated the fast moving parts in to a separate source you would want to decrease the days supply, particularly with a daily order. But remember, in any case, before any adjustments, the key is having a good days supply starting point based on your order cycle.
Lastly, logically separate your inventory into as many sources as you think you can handle. Don't be afraid to try it. As a Parts Manager I utilized anywhere from 20 to 25 sources per car line. Multiple sources really give you a lot of flexability. Combined with a source by movement you can significantly improve your inventory performance.
Gary