Demand Planning & Demand Management

OVERVIEW

Demand planning or sales forecasting is one most important aspects of any organization, whether it is a service or a manufacturing organization. A service organization would estimate the demand for the services and prepare to service the demand for its services. A manufacturing organization would be assessing the demand for its manufactured goods by estimating the supply of raw materials, production capacity, and distribution for example.

Organizations should make every effort to manage demand to effectively plan how to satisfy this demand. Rather than merely ordering takers, demand management is necessary to match marketing and sales efforts with production lead times and is also essential in situations where capacity has changed, either due to changes in equipment and/or human resources. Most importantly, demand management is essential in terms of effective, cost-focused, inventory considerations.

OBJECTIVES

By the end of this training course, participants will be able to:

• Examine the most appropriate method for Planning Demand
• Understand the role of inventory in the organization
• Apply best methods to manage demand
• Understand the differences between supply chain and demand chain
• Appreciate the importance of delighting the customer

TARGET PARTICIPANTS

• Purchasing, Procurement, Inventory, Sales and Project Personnel
• All others who are involved in the Planning, Evaluation, Preparation, and Management of Demands that cover the Acquisition of Materials, Parts, Equipment, and Services, and who are in organizations whose leadership wants high levels of excellence in those involved in these activities

COURSE CONTENTS

1. Demand in the Supply Chain

• Understanding the Supply Chain
• Customer Segmentation
• Knowing the Needs of the Customer
• Pareto Law in Identifying Product Classification
• Location of Inventory

2. Demand Planning

• Hierarchy of Planning
• Aggregate Planning
• Different Types of Demand Planning
• Maintenance & Inventory Planning
• Master Scheduling

3. Forecasting

• Principles of Forecasting
• Effect of Lead Time on the Forecasting Process
• Quantitative and Qualitative Forecasting
• Tracking Forecast Accuracy
• Determining Safety Stock

4. Inventory Recording

• Periodic Stock Take
• Cycle Counting
• Perpetual Recording
• Utilizing Bar-codes to Manage Inventory and Movements
• The use of Radio Frequency Identification (RFID) for Recording Inventory Movement
• Inventory Accounting

5. Demand Management

• Understanding the Principles of Managing Demand
• Stock Turnover Rate
• Customer Service
• Cost of Operations
• Measuring the Effectiveness of Your System
• How to use the Measurements