Replenishment cycle

CMP slurry delivery system employing filtration for LPC eontrol should consider slurry characteristics including—abrasive type(s) and composition, LPC, PSD, wt% solids, viscosity, chemical composition and the distribution system characteristics—specific pump type and the pumping effects on slurry abrasive, pump size and speed, global distribution loop backpressure, slurry usage and replenishment cycles, slurry turnover rate and typical turnovers before consumption, filter ratings for various locations, allowable pressure drop for filters, and the slurry flow and temperature consistency needs. 

Figure 1. Time course of medium glucose and lactate concentrations ofLLC-PKI ceiis under conventionai static conditions (A) and with continuous medium renewai (B). (A) LLC-PKi cells were grown to confluence and on 24 well plates, medium was removed from wells every two hours. Two medium replenishment cycles were conducted [r], (B) LLC-PK1 cells were cultured to confluence on micropourus filters and transferred to the EpiFlow perfusion device. Medium perfusion was 2 mi/h. Sampies in the outflowing medium werecoiiectedatreguiarintervais. Giucose and lactate were measured using colorimetric assays. Results represent the mean SEM from 3 experiments. For more information see Felder et. al. 2002 [72].

Replenishment cycle time The total time from the moment a need is identified until the product is available for use. The APICS Dictionary, lOth edition uses lead-time to define this. Here we refer to cycle time as a physical property and lead-time as a market-determined property, or expectation by customers for performance. (Adapted from APICS Dictionary, 10th edition )... 

A less rigorous approach to finding a (Q, R) solution would be to solve for Q and R separately. Note that z = R - MoltV dlt gives a fractile of the distribution of demand over the lead time. Thus, we could set R to achieve a desired in-stock probability, along the lines of the newsvendor problem solution discussed earlier (i.e., to accumulate a given amount of probability under the DLT distribution). In this setting, the in-stock probability is typically referred to as the cycle service level (CSL), or the expected in-stock probability in each replenishment cycle. Specifically, for normally distributed lead-time demand, DLT, we set... 

A straightforward way to address this situation is to consider ordering all items jointly on a common replenishment cycle. In essence, this changes the decision from "how much" to order—the individual order quantities, Q,— to "how often" to order, which is given by n, defined as the number of joint orders placed per year. Then since n = DJQ => Qj = D,/n for each item i, we can build a joint-ordering TAC model with... 

Terreri, April, A Bigger Pop at Jxvitz Eor Jxvitz, excellent customer service is all about a successful supply chain. A weekly replenishment cycle will reap huge paybacks for the company. CSCO Insights for the Supply Chain Executive, August 2005, pp. 34-36, 39. 

To meet the needs of the automaker within the campus, the supplier needed to perform a series of changes in its internal supply chain processes. The supplier moved processes (6) to (10) to the campus as they needed to be completed in real time, while processes (1) to (5) remained at their current location. The supplier bore the responsibility for all transportation between its current plant and the new campus. The automaker managed its final assembly line at the campus using a novel system called jumbiki which required short replenishment cycles of procurement from its suppliers. The supplier s facility within the campus, in essence, acted as an extension of Toyota s final assembly line. Thus, when the vehicle body was about to leave the paint shop, Toyota notified the vehicle s final configuration, as well its final sequencing on the assembly line, via EDI to the suppliers. 

Suppliers began to outsource their production to new factories in South East Asia and Morocco to reduce costs, but this resulted in six-week replenishment cycles and loss of responsiveness. Complementary sets of clothes were sourced to different countries, and it proved hard to coordinate deliveries. 

The order replenishment cycle concerns the time taken to replenish what has been sold. Lean thinking seeks to manage the order replenishment cycle by replacing only what has been sold within rapid replenishment lead times. These points are taken up in the next two sections of this chapter, on vendor-managed inventory and on quick response. 

Many of these benefits are being experienced by those implementing the CPFR philosophy. Wal-Mart and Sara Lee experienced sales increases of 45 per cent and a decline in weeks-on-hand inventory of 23 per cent. The benefits experienced by Procter Gamble and its retail partners include a reduction in replenishment cycle time of 20 per cent. The increased visibility of the supply chain resulted in a reduction of in-store availability from 99 to 88 per cent being detected with sufficient lead time to respond. This saved three to four days of stockouts for the retailer. Forecast accuracy improvements of 20 per cent have also been experienced. 

Depending on the transaction in question, the subprocesses in Figure 1-4 can be applied to the appropriate cycle. When customers shop online at Amazon, they are part of the customer order cycle—with the customer as the buyer and Amazon as the supplier. In contrast, when Amazon orders books from a distributor to replenish its inventory, it is part of the replenishment cycle—with Amazon as the buyer and the distributor as the supplier. 

L. L. Bean executes all processes in the customer order cycle after the customer order arrives. All processes that are part of the customer order cycle are thus pull processes. Order fulfillment takes place from product in inventory that is built up in anticipation of customer orders. The goal of the replenishment cycle is to ensure product availability when a customer order arrives. All processes in the replenishment cycle are performed in anticipation of d and and are thus push processes. The same holds true for processes in the manufacturing and procuranent cycles. In fact, raw material such as fabric is often purchased six to nine months before customer demand is expected. Manufacturing itself begins three to six months before the point of sale. The processes in the L. L. Bean supply chain break up into pull and push processes, as shown in Figure 1-6. 

Average replenishment batch size measures the average amount in each replenishment order. The batch size should be measured by SKU in terms of both units and days of demand. It can be estimated by averaging over time the difference between the maximum and the minimum inventory (measured in each replenishment cycle) on hand. 

A CSL of 0.92 implies that in 92 percent of the replenishment cycles, B M supplies all demand from available inventory. In the remaining 8 percent of the cycles, stockouts occur and some demand is not satisfied because of the lack of inventory. 

To evaluate the fill rate, it is important to understand the process by which a stockout occurs during a replenishment cycle. A stockout occurs if the demand during the lead time exceeds the ROP. We thus need to evaluate the average amount of demand in excess of the ROP in each replenishment cycle. 

The expected shortage per replenishment cycle (ESC) is the average units of demand that are not satisfied from inventory in stock per replenishment cycle. Given a lot size of Q (which is also the average demand in a replenishment cycle), the fraction of demand lost is thus ESC/ Q. 

Thus, on average, in each replenishment cycle, 25 phones are demanded by customers but not available in inventory. Using Equation 12.6, we thus obtain the following fill rate ... 

Typically, in continuous review policies, the lot size ordered is kept fixed between replenishment cycles. The optimal lot size may be evaluated using the EOQ formula discussed in... 

Describe different measures of product availability. The three basic measures of product availability are product fill rate, order fill rate, and cycle service level. Product fiU rate is the fraction of demand for a product that is filled from inventory. Order fill rate is the fraction of orders that are completely filled. Cycle service level is the fraction of replenishment cycles in which no stockouts occur. 

Establish an alternative formula for expected shortage per replenishment cycle (ESC) to be evaluated using Excel. 

In this section, we focus on products such as detergent that are ordered repeatedly by a retail store such as Walmart. Walmart uses safety inventory to increase the level of availability and decrease the probability of stocking out between successive deliveries. If detergent is left over in a replenishment cycle, it can be sold in the next cycle. It does not have to be disposed of at a lower cost. However, a holding cost is incurred as the product is carried from one cycle to the next. The manager at Walmart is faced with the issue of deciding the CSL to aim for. 

Increased cost per replenishment cycle of additional safety inventory of 1 unit = (Q/D)H... 

The most effective combination is for the overseas source to focus on replenishing cycle inventories, ignoring uncertainty. The local sonrce is used as a backup any time demand exceeds the inventory available. 

---