impact is on limits

English translation: typo, impact is on limits OF...

13:35 Feb 13, 2010
English language (monolingual) [PRO]
Bus/Financial - Management
English term or phrase: impact is on limits
I am translating a presentation about measures to reduce working capital, i.e. to reduce powder coating inventories, reduce the quantity of aged products etc.
I can’t quite work out the meaning of this phrase with asterisks – ‘’impact is on*******limits’’ in slide 7. I understand that inventory exposure means risk involved in keeping inventories for (too) long.
Thank you



Slide 6
Recommendations - Planning
• Engage Sales and Production and Finalize then Publish the Rules on MTS vs. MTO (make-to-stock vs. make-to-order)
• Change time frame thinking from Months to Weeks – easier to implement small step improvements
• Develop Forecast based on history for Sales to review
• Set ROP (re-order point)based on demand history over the replenishment lead time horizon – new view.
– Work with IT to assist with a tool to provide this view
– Determine the best method to get a total European inventory view

Slide 7

Recommendations – Planning, continued
• For MTS:
– use Demand History to establish forecasts into SAP
– use Demand History to establish ROP
– use forecasts to potentially adjust ROP
– Only replenish inventory when actual inventory is below ROP, not if forecast drives calculated inventory below ROP (SAP setting?) – Demand pull system
– Set Batch sizes to 10 weeks of demand – impact is on*******limits inventory exposure
– Establish a process to continuously review ROP settings
– Stocking Agreement Management
Grzegorz Mysiński
Poland
Local time: 07:23
Selected answer:typo, impact is on limits OF...
Explanation:
Should read: "impact is on limits of inventory exposure": this affects the limits (i.e. time limits) for which the inventory can be exposed.
Selected response from:

Jack Doughty
United Kingdom
Local time: 06:23
Grading comment
Thank you, Jack!
4 KudoZ points were awarded for this answer



SUMMARY OF ALL EXPLANATIONS PROVIDED
3 +1typo, impact is on limits OF...
Jack Doughty
3result or effect is on limiting inventory exposure
Yasutomo Kanazawa


  

Answers


8 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +1
typo, impact is on limits OF...


Explanation:
Should read: "impact is on limits of inventory exposure": this affects the limits (i.e. time limits) for which the inventory can be exposed.

Jack Doughty
United Kingdom
Local time: 06:23
Native speaker of: English
PRO pts in category: 52
Grading comment
Thank you, Jack!

Peer comments on this answer (and responses from the answerer)
agree  Kim Metzger
2 days 38 mins
  -> Thank you.
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14 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
result or effect is on limiting inventory exposure


Explanation:
Reading Slide 6, it talks about Planning shorter time frames and forecasting sales based on history etc., and Slide 7 is a continuation of 6. Since it is recommended in 6 that the time frame should be changed from months to weeks and replenishing inventory when the actual inventory is below ROP, this means that one should not stock unnecessary inventories based on your own feeling or hunch, but rather data collected in the past. Setting batch sizes to 10 weeks of demand, and this will result in or have an effect on limiting inventory exposure, which means that this would influence in a way that unnecessary inventory would not be stocked.

Yasutomo Kanazawa
Japan
Local time: 15:23
Works in field
Native speaker of: Native in JapaneseJapanese
PRO pts in category: 16
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