Forecasting and Demand Planning
This course, will explain demand planning theories, models and best practices which will help participants in dealing with various future scenarios in order to ensure a continuous flow of inventory at the least possible cost.
This course uses a mix of interactive and hands-on techniques and brief presentations by the consultant and the participants. There will be many individual and group exercises. The exercises are all work related where participants need to calculate or draw the optimal solutions after understanding the process.
· State the objectives of stock management and list their impact on cost and customer service
· Prepare proper classification of stock and use best practices for item specification and cataloguing
· Use scientific forecasting techniques to predict demand and better manage lead times
· Differentiate and categorize stock cost elements
· Compute the optimum ordering quantity and determine safety stocks and reorder points
Introduction to stock management
· Supply chain management scope
· Functions and objectives of supply chain management
· Objectives of inventory planning and stock control
· Reasons to hold inventory
· Inventory information system considerations
· Inventory push versus pull systems
· Identifying inventory costs
· Customer service in inventory management
Description and classification of inventory
· Types of inventory
· The inventory ABC classification ranking model
· Uses of the ABC ranking
· Forecasting demand and lead time
· The inventory order cycle
· Dependent versus independent demand
· Factors affecting demand
· Factors impacting demand forecast accuracy
· Demand patterns
· Time series forecasting methods
· Seasonal demand
· Moving average
· Exponential smoothing
Measuring the accuracy of the forecast
· Setting lead time and methods to control it
· Inventory costs
· Inventory cost elements
· Cost of item
· Purchasing cost
· Carrying or holding cost
· Stock-out cost
· Inventory systems
· The Economic Order Quantity (EOQ) model
· Dealing with quantity discounts
· Objectives of safety stocks
· Setting safety stocks
· Determining the Reorder Point (ROP)
Logistics Officers, Managers and junior personnel who want to progress. Project team leaders, senior and mid-level managers, owner of companies, consultants, mentors, coaches, and training specialists who intend to enhance their knowledge in this area.