Learning from the Past, Present, and Future to Drive Profits to New Levels

Chapter 14 Theory of Constraints Distribution and Replenishment Solution

DOI: 10.4324/9781003462385-14

Most businesses in today’s business world are in some way linked to some kind of supply chain system. It really doesn’t matter if your company sells, distributes, or manufactures goods because you must have stock keeping units (SKUs), parts, or raw materials from somebody else, in order to do whatever it is you do before you pass it on to the next link in the supply chain. In today’s business world, many businesses typically use what’s referred to as the minimum/maximum (Min/Max) model to manage their supply chain. Businesses replenish what they sell, but unfortunately many times there are periods of excessive stock-outs of parts, even though ...