Brief Summary

Retailer's Stock Investment

One of the main aims of supply chain management is to reduce the investment required in stock by the retailer, whilst ensuring that consumer demand is met.

Retailer's Return on Investment

The ultimate productivity measurement, in the buyer’s eyes, will be the ability of products to bring adequate profits from the investment required.

Present and Future Values

The `fire-fighting’ aspect of the NAM role means that on a day-to-day basis time is indeed money. However, planning for the longer term means not only finding the time to do it, but also taking into account the changing value of money over time.

The 80:20 Rule

The popular `80:20’ rule is derived from Pareto analysis, named after the 19th century Italian mathematician who observed that a small proportion of the country’s population accounted for a large percentage of wealth (surprise, surprise!).

Screening Techniques

Screening techniques are designed to examine new ideas (new products, new customers, new price proposals etc.) at an early stage before detailed research and financial investment are undertaken.

Delivered Value Ratio

A powerful concept for NAMs when evaluating the offering to the buyer is the delivered value ratio.

Costing for a Multi-Buy

As a promotional tool, a multi-buy can be an effective means of addressing the consumer’s needs for bulk-style purchasing and value for money, whilst proving attractive as a volume-building initiative.

Simulation Modelling (Intro)

A simulation model is a powerful tool used by business managers to describe real life situations and probable effects of their decisions.

Simulation Modelling (2) - Flow Charts

A flow chart is a diagrammatic representation of the organisation of an activity and is a useful tool in itself for illustrating what actually happens within a company.

Simulation Modelling (3) - Probability

Probability is the chance of something happening, and is a frequently used concept in business management.

Simulation Modelling (4) - Random

Random numbers provide an important link between probability and occurrence and, via simulation, can save the expense/inconvenience of 'real time' monitoring of events.

Simulation Modelling (5) - Results

Over the past four KamStats we have constructed our simulation model. We now have a powerful and flexible tool showing the company’s ability to satisfy orders.