Prompting for Supply Chain and Inventory Optimization
Manufacturing doesn't exist in isolation. Supply chain efficiency directly impacts production performance.
Scenario: Optimizing Inventory Levels
Good prompt: "I need to optimize raw material inventory for our top 10 purchased components. Current situation: we carry 60 days of inventory on average, which ties up approximately $450,000 in working capital. Lead times from suppliers range from 2-8 weeks. We experience stockouts 2-3 times per month causing production delays. Usage is relatively steady but has seasonal variation (20% higher in Q2 and Q4). For each component, I have historical usage data for the past 2 years. Walk me through how to calculate optimal reorder points and order quantities that minimize total cost (inventory carrying cost + stockout cost + ordering cost) while maintaining appropriate service levels. Then show me how to apply this to a specific example: Component X with 8-week lead time, $50 unit cost, average usage of 500 units/month with 15% standard deviation."
Scenario: Supplier Performance Analysis
Good prompt: "I need to evaluate our supplier performance systematically. We have 12 key suppliers providing components and raw materials. Metrics I care about: on-time delivery rate, quality (defect rate), price competitiveness, lead time consistency, and responsiveness to issues. Some suppliers are better on quality but worse on delivery. Others are cheapest but have quality problems. I need a framework for scoring and comparing suppliers holistically, and guidance on how to have productive conversations with underperforming suppliers to drive improvement. Also suggest how to reduce supply chain risk by identifying critical single-source components."
We help manufacturers implement practical, private AI systems that drive measurable operational improvements. Let’s talk.