• Theory Of ConstraintsCross Docking: Don't try this at home!

    Cross Docking: Don’t try this at home!

    The practice of cross docking is another error that follows logically from a mistaken assumption. I have already shown why MIN/MAX and EOQ are wrong. The basic assumption is that “reducing logistics costs increases profits”, and the problem is precisely how costs are calculated. I won’t go into that now; another time I will show how cost accounting gives the wrong information…

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  • Theory Of ConstraintsMIN/MAX and EOQ fallacy

    MIN/MAX and EOQ fallacy

    Why do we have inventories? All consumer goods, such as soap or food, even household appliances, you know what I mean, all these products are in inventories. We are used to thinking about store inventories, but there are also inventories in distribution centers and even factory warehouses for finished products. This inventory has a unique feature: it was purchased, shipped,…

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  • Warehouse managementWMS

    What is a WMS?

    A WMS (Warehouse Management System) is a software that allows you to carry out an intelligent and real-time control of the operation, increase the speed of the transactions and have a wide visibility of the movements in the warehouse or the CEDI. In other words, it is a tool that supports operations management. The objective of a WMS is to…

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  • Inventory managementInventory valuation methods

    Inventory valuation methods

    Valuation Methods or, Inventory Valuation Methods are techniques with the main goal of selecting and applying a specific base to evaluate inventory in monetary terms. Valuation is a vital process when acquisition unitary prices have been different. There are many Inventory Valuation techniques, however those commonly used by Organizations today are: Given that Specific Identification consists in the individual identification…

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