11 - Supply Chain Management

The purposes of this chapter are to provide guidance in using the TOC pull distribution method in order to manage stocks across the supply chain; understanding the current methods used in order to manage stock; understanding the inherent problems with using forecasting in order to manage stock; understanding the steps needed in order to start managing stock levels at the different stocking points according to TOC principles; knowing how to use Buffer Management (BM) to allow better execution by having a priority mechanism to manage production, procurement & transport orders; knowing how to use Dynamic Buffer Management (DBM) in order to adjust the stock levels to actual supply & demand; knowing how to use a TOC-based measurement system in order to manage a product portfolio; knowing the correct way of using forecast without suffering the negative ramifications in order to manage seasonal events (including promotions); understanding the software aspects of moving to the TOC pull distribution; and knowing how to manage the TOC project in a way that will enable smooth implementation with fast results while maintaining a full buy-in of everyone involved at each step.