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How DDMRP buffers saved my wine stocks during lockdown - Part 2
by Ken Titmuss CPIM-F, CSCP, CLTD, CPF, SCOR-P, PLS, CS&OP, CDDP, CSCAA
few months ago I wrote an article on how a DDMRP buffer was managing my wine
cellar and allowing me to enjoy my normal glass of wine occasionally,
even though liquor sales had been stopped here in South Africa during
the Covid-19 pandemic, levels 5 and 4.
At that time, my buffer was in the following situation:
At that time, my buffer was in the following situation:
If
you remember, my ADU was set at 0.333 bottles per day and I was
ordering 24 bottles on a 60-day cycle. At the time, my on-hand stock
was 22 bottles. With nothing on order my Net Flow was also about 22
bottles, which was well below the top of Yellow and therefore I should
have been ordering and replenishing my stock, which was not possible.
So let's take a look at my wine cellar situation as we entered level 3 and the liquor stores re-opened, albeit only from Monday to Thursday. Well, I did not rush off to the bottle store as I still had 17 bottles of wine, which put me in the Red Zone, but there was no need to panic. At my current ADU I still had enough for the next 8 weeks at least (after which it would have been in order to panic).
So let's take a look at my wine cellar situation as we entered level 3 and the liquor stores re-opened, albeit only from Monday to Thursday. Well, I did not rush off to the bottle store as I still had 17 bottles of wine, which put me in the Red Zone, but there was no need to panic. At my current ADU I still had enough for the next 8 weeks at least (after which it would have been in order to panic).
As
you can see, the current on-hand inventory was about half what my
average inventory should have been and was in the Red Zone, so I had
received a low inventory warning, but there was no real danger of a
stockout. I had ordered, on-line, 24 bottles which were delivered a few
days after the ban was lifted. The Net Flow was at 41 bottles, putting
me just in the bottom of the green zone. So, my planning was okay at
that time, though the following weekend's consumption reduced the Net
Flow to just inside the yellow zone, which triggered a need for more
replenishment.
Remember, I set up the buffer based on my usual visit to the wine farms about every 60 days, so I needed to plan a trip into the country to replenish my wine stock, but as I then had almost 2 months to do so, there was no need to rush! Thanks to the DDMRP buffer, I can take it easy and enjoy my daily glass without any fear of ever running dry.
Remember, I set up the buffer based on my usual visit to the wine farms about every 60 days, so I needed to plan a trip into the country to replenish my wine stock, but as I then had almost 2 months to do so, there was no need to rush! Thanks to the DDMRP buffer, I can take it easy and enjoy my daily glass without any fear of ever running dry.
For more information, contact Ken Titmuss