Demand planning, inventory optimisation, and replenishment planning are all important strategies that organisations can use to improve their supply chain management and increase profitability. When implemented effectively, these strategies can help organisations to reduce costs, improve efficiency, and increase customer satisfaction.
Demand planning is the process of forecasting customer demand for a product or service. By accurately forecasting demand, organisations can ensure that they have the right products in the right place at the right time. This can help to reduce costs by minimising the need to hold excess inventory, and it can also improve customer satisfaction by ensuring that products are always available when customers want to buy them.
Inventory optimisation is the process of managing inventory levels to ensure that they are sufficient to meet customer demand, but not so high that they result in unnecessary costs. This can be achieved by using techniques such as just-in-time (JIT) inventory management, which involves only ordering inventory as it is needed, and safety stock inventory management, which involves holding a small buffer of inventory to protect against unexpected demand. By optimising inventory levels, organisations can reduce costs by minimising the need to hold excess inventory, and they can also improve customer satisfaction by ensuring that products are always available when customers want to buy them.
Replenishment planning is the process of determining when and how much inventory should be ordered to replenish stock. By using techniques such as reorder point (ROP) and economic order quantity (EOQ), organisations can determine the optimal time to reorder inventory and the optimal quantity to order. This can help to reduce costs by minimising the need to hold excess inventory, and it can also improve customer satisfaction by ensuring that products are always available when customers want to buy them.
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