Goldratt's Blog

Theory of Constraints Golden Nugget
#2 – The Stray Elephant

(MTA; Production)

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 Webcast Series on Make to Availability (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