Tactics on Inventory Projections (2,242 words)

We have a variable order scheduling system that looks at orders every night and knows when to recommend we place an order with the vendor. We can see when an item is crossing over into the safety-stock level.

CS: How do you determine the accuracy of your inventory projections?

Zientarski: We look at a forecasting accuracy metric and an inventory accuracy metric. The system calculates a theoretical inventory based on these stats, and compares it to what the actual inventory is. Then our buyers can make inventory projection determinations. They've been doing this work a long time, so they have a good feel for it.