Accurate Capacity Planning Completes the Loop

Before sending another demand signal upstream, retailers answer the questions Do we have enough eurrent capacity to receive and store supplier deliveries or are there current receiving constraints Do we have enough storage space to hold any increased inventories Safety stocks are 

Scheduled production In-transit shipmertts Recelving pace capacity 

On the manufacturing side of the picture, the replenishment signal is now forwarded to the appropriate manufacturing site. Inventory in the network should be online and analyzed to determine what needs to be 

Any returns or necessary replacements should be added or subtracted from the demand. If there are any buying system requirements, such as minimum order quantities or lead-time factors, they should be considered before making changes to planning and scheduling. Status of orders and any changes to blanket orders should be processed at this time. Finally, new orders or adjustments to orders are sent to suppliers and subassembly manufacturers or contract partners. 

Rob Guzak and Steve Simco, who are CSC partners and order-management specialists, developed this chapter. 

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