MRP

How can I reduce time to shipment?

Reducing time to shipment can profoundly improve your bottom line by boosting sales and cash flow through increased customer satisfaction and quicker payments. You can reduce or eliminate time to shipment by taking the following measures:

  • Any sell item with predictable demand that is currently made to order should be given a "forecast" order policy so that it will be available for immediate shipment from stock. This eliminates time to shipment altogether. Any risk of over-stocking is mitigated by the item's Supply Days setting, which limits stock to an amount that covers forecasted usage for a specified number of days, and the demand-driven nature of MRP, which means that a new job will never get generated unless triggered by actual demand.
  • Any subassembly item with predictable demand should be given a "forecast" order policy so that it will be available for immediate issue to jobs from stock. This eliminates the item's job days as a contributor to total time to shipment. Any risk of over-stocking is mitigated by the item's Supply Days setting, which limits stock to an amount that covers forecasted usage for a specified number of days, and the demand-driven nature of MRP, which means that a new job will never get generated unless triggered by actual demand.
  • Any purchased item with predictable demand that is currently purchased to order should be given a "forecast" order policy so that it will be available for immediate issue to jobs from stock. This eliminates the item's lead days as a contributor to total time to shipment. Any risk of over-stocking is mitigated by the item's Supply Days setting, which limits stock to an amount that covers forecasted usage for a specified number of days, and the demand-driven nature of MRP, which means that a new PO will never get generated unless triggered by actual demand.

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