Every company has different inventory model needs. Challenges vary widely, depending on a company’s business model, size, geographic location and industry sector, among other factors.
Even within a company, there are several different situations that require some form of demand sensing and response for management control.
Before tackling the demand planning process, companies should clearly define their problems:
• Are you setting stocking policies or setting financial guidance?
• Do you have sporadic/lumpy demand or continuous volume?
• Are you looking at short-term or long-term financial projections?
• What are your allowable tolerances?
Ensuring the right product at the right place at the right time is hard.
Following some simple rules makes it simpler.
