| EIQ analysis and ABC analysis are tools for logistics analysis, but one aspect that often gets overlooked is the concepts of volume and time. An analysis that focuses solely on the quantity of items and shipping destinations does not allow for the calculation of the number of pallets needed for inventory storage. The number of pallets needed is calculated based on the volume of the case. The required equipment loading/unloading and transport capacity is based on hourly capacity. If 100 pallets are shipped per day, this might require 100 pallets in 5 hours, or 20 pallets in 4 hours plus 80 pallets in 1 hour. Based on the above, it is easier to understand EIQ analysis as EIQ_VT analysis, where V is volume and T is time. ABC analysis is similar. TCalc allow you to simultaneously check the "number of loose items," the smallest unit of SKU, in "case conversion," "PL conversion," "volume conversion," and "weight conversion." Conditional extraction based on time segments is also possible. As an aside, I was once temporarily excommunicated by Professor Shin Suzuki for saying that EIQ analysis is impossible to design a system without the concepts of volume and time. He said that he already knew that, but adding the concepts of volume and time would make EIQ analysis more difficult for people to understand. At the time, there was a plan to add the concept of dimensions, called SEIQ analysis, but it was not made public. Professor Shin Suzuki was the head of the design department at a major logistics equipment manufacturer, and while he has a long track record with distribution centers, he was also the designer who laid the foundation for airport baggage handling systems. He translated books from English, especially German. |