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The Ultimate Guide to Inventory Planning Methods - Pro

The objective of this guide is to describe the present use, application and characteristic of selecting various inventory planning methods, and to explain how the methods are applied by the supply chain professionals.

This guide would be considering five Inventory Planning Methods which includes:

• Kanban

• Re-order points

• Fixed Order Interval

• Run-out time

• Material Requirement Planning (MRP)

Most of the Inventory Planning methods can be used in manufacturing as well as in the distribution industry.

These Inventory Planning methods should be seen as a tactical planning level. It concerns balancing supply and demand and it is in this respect dealing with the initiation, control, and monitoring of manufacturing and purchasing orders in order to keep the material flow and the value-adding activity in manufacturing going on without interruptions.

The guide comprises of 23 pages and over 4000 words with picture illustrations and easy to understand bullet point concepts.

Contents

Introduction

Poor Inventory Planning Symptoms

KANBAN

Benefits of the Kanban system
Characteristics of the Kanban System
Rules of the Kanban system
Profile Kanban system

RE-ORDER POINTS

Characteristics of Re-order Point Systems

FIXED ORDER INTERVAL

RUN-OUT TIME

MATERIAL REQUIREMENT PLANNING (MRP)

Evolution of Material Planning Systems
The Benefits of MRP
What is Required to Run MRP
Key Terms for MRP
Where-Used and Pegging Data
Dependent vs. Independent Demand
Actions of the MRP Planner
Characteristics of MRP
’Summing-up’ Material Planning Method Characteristics
Key Challenges in Using MRP
Kanban vs. MRP – Key Differences

Conclusion

References

Considering that the planning environment and the way an inventory planning method is applied has a major influence on how efficiently and effectively it can be used, it is of interest to know more about which inventory planning methods companies use, in what planning environment they use them, how they use them and how successfully they can be used.

You will also find my blog 18 Targeted Inventory Reduction Strategies for Supply Chain Professionals - https://www.scmdojo.com/inventory-reduction-strategies/ . useful. 

If you choose to download these materials, you'll be added to my mailing list. You can unsubscribe at any time, but I hope you'll stick around. 

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  • Size945 KB
  • Length23 pages

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The Ultimate Guide to Inventory Planning Methods - Pro

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