Capacity planning Demand management

Uncertainty in value chain management is a key motivation to use simulation comparing different scenarios, e.g. of demand quantities and prices, in order to simulate capacity planning in the automotive industry (Eppen et al. 1989)... 

Review of Volume and Layout Decisions Manufacturing Planning and Control Systems Influence of Supply Chain on Demand Management Detailed Material Planning Detailed Capacity Planning Just-in-Time (JIT)... 

Customer focus and demand Resource and capacity management Procurement and supplier focus Inventory management Operations management Distribution management Systems and procedures Sales and operations planning Performance management... 

MODELS FOR FORECASTING, DEMAND MANAGEMENT, AND CAPACITY PLANNING... 

With improvements to forecasting and a reliable level of accuracy as deliverables, the firm looks next at its demand management and capacity planning systems. For any such system to work effectively, the firm must meticulously collect the necessary data from everyone who can generate valuable information about demand — internal sales representatives, customer service personnel, channel partners, distributors, customers, and consumers. This data must then be refined frequently and updated to match actual consumption and replenishment needs. Any alterations to changing consumer preferences, customer needs, buying patterns, competitive moves, and market conditions need to be part of the input to a dynamic system of analysis, direction, and response. The process is continuous and requires maintenance to keep the demand plan as close to actual consumption and replenishment needs as possible. 

Figure 5.8 Inter-Enterprise Demand Management and Capacity Planning...

The real test of how well a demand management/planning process Is working should be how high the percentage of perfect order achievement Is compared to the number of days of Inventory and the amount of capacity needed to achieve that level. 

It shows concisely the existing vendor capacities for the raw material, planned expansions or new producers, demands for other uses, and demand within the analyst s company. In some cases, the report includes a wodd supply and demand balance. A key objective of a purchase profile report is to make the buyer as well informed as the marketing manager of the seller. If this is achieved, the buyer can often secure a beneficial purchase contract. 

Production management is responsible in the short term for planning production in order to cover the overall supply chain demand, and for delivering timely, complete, and quality-checked production volumes accordingly. In the long term, it optimizes the production network configuration and available capacity. 

RCCP Set-up RCCP Execution Capacity Evaluation Review Capacity Evaluation Issue Resolution Demand Version Creation Scenario Creation and Initiation PIR Management Plan Capacity... 

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