How many SKUs should a demand planner manage?
Summary
These numbers represent the cruise speed that Lokad reaches 6 months to 1 year down the road after starting a supply chain initiative with a client. Half a dozen of our most talented senior scientists individually manage: Our supply chain scientists try to maintain a 80/20 work ratio: 80% of the time spent on implementing and improving numerical recipes, 20% spent discussing and getting feedback from the client company. Teams spend all their time firefighting, processing alerts and exceptions, instead of improving the numerical recipes themselves. The bulk of the classic supply chain theory (point forecasts, safety stocks, EOQs, min/max, ABC analysis, etc.) On a tangential note, when we negotiate a monthly subscription fee, we try to make sure that the client company can offer us a single point of contact who will act as the coordinator for the whole initiative.
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