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    Supply Chain Management (Chapter 11 of Theory of Constraints Handbook)

    By: Amir Schragenheim

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    This is an individual chapter of Theory of Constraints Handbook. 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.

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