The Key Is Balancing Demand and Supply

Demand forecasts can be generated in the usual, but preferably enhanced, manner. VMI requirements should also be considered as those doing the actual restocking record what is moving and what is still there. Replenishment information, based on actual cash register records or store- 

Constraint Identification and Control Physical Flow of Goods Services  

As the firm analyzes its capacity to meet demand, it considers internal operations. Now the way that bills of material have been filled is discussed, the results of the sales and operations planning activity are considered, and advanced scheduling and planning results are reviewed to make sure out-of-balance conditions are not occurring. Adjustments are made, if necessary, to raw material, work in process, and finished goods to 

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