Dynamic Buffer Management (DBM)

We use simple and straightforward methods for easy comprehension and therefore do not follow very sophisticated modules of forecasting.

Our logic dynamically measures the actual usage of the stocks and readjusts the inventory levels accordingly. This method is referred to in current TOC literature as Dynamic Buffer Management (DBM). By monitoring the buffer penetration at each stock location for each product, the right buffer size that can be kept for a product at a stock location can be identified.

The Dynamic Buffer Management (DBM) approach argues that by monitoring and adjusting the buffer sizes, the “real” stock required to be kept at the site in order to cover for the demand, taking into consideration the supply side (how fast delivery to the stock location can be made) can be easily arrived at.