Demand planning systems

Master production schedule A long-term schedule created and maintained by enterprise planning systems that defines quantities of particular products to be produced in particular time frames based on customer demands, manufacturing capacity, and resource availability. 

In the case of order promising, the demands on this timing change. Here, when completion date and an immediate response is expected. This is a synchronous process. Moreover, as new orders are entered, they need to be promised based on the latest information, including those orders that have just been accepted. Thus, the planning system, upon order acceptance, must immediately reserve materials and capacity so that aJl future promises can reflect the impact of even the most recently accepted orders. 

A 400 million upgrade to Nike s supply chain systems resulted in 100 million in lost sales and a 20 percent stock dip. The reason given by Philip Knight, then Nike s chairman and CEO, was "complications arising from the impact of implementing our new demand and supply planning systems and processes. 

The implementation of a new demand management system helped a large U.S. direct store delivery company improve forecasting accuracy by 4 percent and increased service levels by 6 percent. Despite growing volumes, the company was able to hold inventory costs flat. The company also found that based on the new forecast, the sales department was better equipped to plan profitable sales promotions. The project s savings exceeded expectations. 

Quadrant III. In this quadrant, volume is low and demand error is low. Efficiency in this supply chain can be achieved through advanced planning systems (APS) that utilize the TOC logic. Through the use of the software, these lower volume items can be combined with higher volume product cycles to reduce the impact of constraints and decrease the impact of cycle stock on inventory carrying costs. 

Step 1 Data Gathering Most of this activity occurs within the Information System and/or Demand Planning departments, and happens shortly after the end of the month. It consists of three elements ... 

External-facing collaborative software integrated to internal demand-supply planning systems... 

A related concept is the bullwhip effect. The name refers to a phenomenon in which a relatively steady level of final demand from end-users has a supply chain behind it that experiences wide swings in production and inventory. The reasons include the tendency to hedge as we have just described, time lags, lack of information sharing, poor or incomplete information that is shared, and the nature of planning systems and decision rules along the chain. 

Demand management Minimized duplication, planning system, demand-driven ordering (clinical guidelines etc.) 2-4%... 

Figure 1 Flow Chart of procedures constituting a complete process in an anodizing/electroplating plant, according to the 21-step CAPE plan described in the text (t trainee s initiative and demand s System s response and supply).

Integrated supply chain planning system with interfaces to all supply/demand data sources through digitally enabled supply networks Tools support balanced decision making (e.g., trade-off between service level and inventory investment) 6-Functional supply chain processes (plan) 0 X X X X... 

Rules-based distribution planning system Demand priorities reflecting strategic customer relationships as business policies are automatically followed in allocating resources first-in-first-out (FIFO) is utilized as the default scheduling priority l-Customer segmentation and supply chain strategy 0 X X X... 

Enterprise-wide planning system for re-balancing of full-stream supply/demand... 

Systems, tools and processes Information systems, management and incentive systems, demand planning, supplier selection, new product introduction tools and procedures, supply chain noject management and cooperation procedures... 

Integrated supply chain or demand planning with point of sale and customer inventory systems... 

Source, make Enterprise resource planning system (ERP) On-line visibility of all supply-chain demand requirements and resources, both currently available and committed (pegged) 6 - Functional suf ly chain x (M ocesses (plan) o o... 

Integrated supply chain planning system with interfaces to all supply/ demand data sources through digitally enabled supply networks... 

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