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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. 

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      • Size 945 KB
      • Length 23 pages

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