One of the reservations initially raised by our clients’ sales people, regarding the inventory turns offer, is that even though they (at last) see the benefits of that offer to their prospects (distributors and/or retailers – resellers), a competitor can still easily win by simply reducing prices.

Not only that there is a decisive answer for such a reservation, but its explanation deepens the sales force… Click here to continue reading.

Watch Dr. Goldratt’s detailed presentation on defining the target market where capitalizing on the Inventory Turns concept can create a decisive competitive edge. The magnitude of the breakthrough of this solution is well described and explained in Goldratt’s TOC Golden Nugget #3.

Inventory Turns Competitive Edge Dr. Eliyahu M. Goldratt Related Info Share this video In this extract from the Goldratt’s Strategy and Tactics for MTS to MTA, Goldratt presents and explains the strategies and tactics for capitalizing on the Inventory Turn concept and how to go about it, starting by defining the target market in which such capitalization creates a decisive competitive edge. 28 min, English

When initially determining the proper buffer target, we need to determine the maximum consumption within replenishment time. That is done by looking back at the consumption during past time-intervals (intervals that are equal in length to replenishment time) and choosing amongst them the max value – or actually, the reasonable max. What does a “reasonable max” means? Well, statistically, the consumption behaves, roughly, as a normal (Gaussian) distribution… Click here to continue reading

Watch Dr. Goldratt’s detailed presenation on determining inventory targets in a make to availability environment. This common sense solution is then complemented with a specific secenario, described and explained in Goldratt’s TOC Golden Nugget #2.

Determining Inventory Targets Dr. Eliyahu M. Goldratt Related Info Share this video In this extract from the Goldratt’s Strategy and Tactics for MTS to MTA Goldratt presents and explains the strategy, tactics and corresponding assumptions for determining proper inventory targets, a critical piece for aligning production to actual demand when producing to availability. 20 min, English, Spanish