Planning For Demand Essay

662 words - 3 pages

There are many planning techniques that Fisher Scientific implements when forecasting inventory and demand. When planning for the demand of a service or product, Fisher focuses on a reorder point bases. When inventory on product drops below the reorder point, this queues up in the purchasing system. When calculating the total reorder point, the planning group analyzes two parts. The fist segment consists of statistical data that is calculated dependant on what minimum amount of product is needed to supply the customer demand and safety stock requirements. Safety stock is needed to ensure inventory for unplanned demand. Fisher usually calculates ten percent of the average demand and adds that amount to the purchase quantity. Another section needed to calculate total reorder point is adjusted. This allows inventory planners to adjust certain reorder points or demand figures dependant upon whether a customer wants product to be held at a Fisher warehouse for a specified amount of time. This will give the customer a guarantee that product is in stock at the time they need the material.Fisher Scientific also forecasts demand using the logility system. This system forecasts using three years of previous demand and order history. The system examines this information using various forecasting models such as exponential smoothing and three month moving average. This data is weighted and examined so the correct model is used to predict average lead time on fast moving products. This information is calculated three years back for accuracy and further demand history.At Fisher, the research department has a higher flow of demand around the winter seasons due to flu shots and medications needed. The education inventory tends to have more demand in the summer months prior to school starting. Each division of Fisher has its' own seasonal flow. By analyzing previous trends, seasonal product lines and customer requirements are easily identified. Since the logility system traces three years back in history, the planners are able to adjust reorder points and safety stock...

Find Another Essay On Planning for Demand

Success Factors in Supply Chain Management

971 words - 4 pages activities for use of supply chain servicing. The Council of Supply Chain Management Professionals (CSCMP, 2011) defines supply chain management in the following way:"Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers

What is ERP? Essay

652 words - 3 pages Enterprise resource planning: (noun); An accounting-oriented information system for identifying and planning the enterprise-wide resources needed to take, make, ship, and account for customer orders.Referenced from:- the APICS Dictionary, 10th editionEnterprise resource planning (ERP) systems started as a means for inventory control and grew to replace islands of information by integrating traditional management functions, such as financials

Supply Chain Integration: Sunsweet Growers of California

906 words - 4 pages requirements. The company can also better manage items that are either dropped or discontinued by reviewing comparable historical information. There are a few other information technology tools that have assisted in this same process, such as e-mail alerts along with other alerts for specific functions related to demand planning. Logistic integration was happening right before their eyes. Finite scheduling was another one of the steps that uses

An overview of MRP

597 words - 2 pages planning and scheduling presented major problems for manufacturers.In the 1970s, manufacturers began to recognize the importance of the distinction between independent- and dependent-demand items and to approach these two categories in different ways. Much of the burden of record keeping and determining material requirements in many firms has now been transferred to computers, using techniques such as MRP. A great deal of the credit for publicizing

Capacity Planning

2075 words - 9 pages is very important part of resource requirement planning. In this essay, we will focus on capacity planning. Capacity Planning Before doing capacity planning we should forecast the future demand of the good or service. Determining future capacity is based on future demand for the product. It is a very complex decision but it can be done by different tools like primary data or previous sale. When demand for goods and services is done then we

Cisco Case

1523 words - 6 pages planning to sales and marketing, supply chain management, and customer service and support. However, generating good forecasts is challenging for a number of reasons. First, relevant data includes both large enterprise data sets about the present (current customer orders) and the past (historical demand), as well as forward-looking insight from sales and marketing, both which can be difficult to access and effectively utilize. Second, most

Production Planning Strategy

796 words - 3 pages organizations use different strategies for the implementation of a production-plan process. The most classical strategies used by the industries are the make-to-order strategy. For the motor bike manufacturing company the most appropriate would be the make-to-stock strategy since the rate of market growth triggers its planning. The market receives many orders from all over the world and the assumptions are that the demand for the machines is high

Production Planning

1002 words - 4 pages Introduction One of the challenges for the operations manager in any business is the scheduling of key production activities. There are numerous variables that need to be considered in this planning process. These factors include production capacity, customer demand, supplier performance, design completion, cash flow, and staffing (Heizer, 2011). All these factors come together to create a production plan that can fluctuate based

Fast fashion essay

1222 words - 5 pages ; Ballou 1998 stated in Boyaci and Ray, 2006). Frequent deliveries to stores mean a competitive advantage over its competitors. Zara conducts frequent deliveries to their stores within 3 weeks. This allows them to meet customer demand and minimize their stock. Short lead times – Another key characteristic of fast fashion is its short lead times. For example “Zara is vertically integrated so they use cheap labour from European countries instead of


522 words - 2 pages The new transit point experiment will need high co-ordination among the retailers, transit point, central warehouse and the plant as the information flow is very important for the regular working of the system. The major change due to the transit point implementation is that the inventory at the regional warehouse which acted as cushion will not be further available and thus the inventory planning needs to be changed to absorb the demand

Changes in Supply, Demand, and Price

801 words - 3 pages bankruptcy, and consumers are spending more than they make in a year.John Addison, Co-CEO of Primerica, states that most people spend more time planning their vacation than their retirement. They need somebody to sit down with them. We believe in the ‘PeopleNet’, not the Internet. In this way, Primerica is the exception to the rule when it comes to the way most feel about supply and demand. For example, the fall in the wage lowers people’s

Similar Essays

Operation Schedule Essay

1553 words - 6 pages The planning and control of operations is all about understanding and managing demand from customers, providing the required resources to meet that demand and planning and scheduling the use of those resources. That means not only manufacturing meet due dates either for stock or for specific customer orders, but operation planning function also aims to ensure that operations resources are used efficiently. Since in most situations over-provision

Scenario Planning Cannot Be Used In International Strategy Development As It Takes Too Long, Costs Too Much And It Would Most Likely Lead To Wrong Strategic Choices

1823 words - 7 pages . Scenario planning is a tool for helping organisations gain an insight into the future in an environment of great uncertainty and allows for management of strategic risks and opportunities. As Conway (2000) describes the process of scenario planning as integrating past and present information, while working with staff to interpret that information in order to explore future strategic possibilities for their organisation. The process involves

Operations Management Theory: Reconciling Capacity And Demand

1643 words - 7 pages (capacity) planning is key to any project (demand) planning and delivery. This demand is based on existing and new proposals for OpenText. Demand elements like opportunity, project portfolio, engagements and projects are the items to be analysed to reconcile capacity with demand. As a professional services organisation (PSO) OpenText require real time visibility into understanding the critical data so as to staff the team to required levels

A Comparative Study Of Regional Planning In Britain And The Netherlands

1726 words - 7 pages functioning, and the effects of decentralization policies for regional planning. The second article is “British discretion in Dutch planning: Establishing a comparative perspective for regional planning and local development in the Netherlands and the United Kingdom” that is written by Leonie B. Janssen-Jansen and Johan Woltjer in 2009. In comparison to Dutt’s (1970) article, this research narrowed down the problem definition since the literature and