Best Practices in Demand and Inventory Planning: Chemical

March 30, 2011

The lack of good supply chain coordination can lead to frequent changes in production schedules, expedited transfers and shipments in distribution, excessive stock-outs, erratic levels of customer service, lack of visibility into future demand, and inventory in the wrong place and at the wrong time.

For many chemical companies, these problems are not new. In fact, their root cause typically revolves around a few basic issues—mainly, a lack of shared knowledge about the supply chain planning function, inadequate decision support systems, and unavailable or inconsistent data due to lack of integration to the core business system.
Supply chain planning involves functions such as demand forecasting and planning, distribution inventory planning, and plant capacity planning and scheduling. The right mix of strategy, education, and systems can have a very high impact on a manufacturer’s overall operations—and ultimately its bottom line.

In this paper, we review

  • The supply chain function
  • Inventory policy
  • Short, medium, and long-range planning horizons
  • Production planning
  • Integration with ERP systems

Read the full paper.

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Stanley Soe
It is good article that helps a lot in solving our safety stock issues and demand/supply inventory issues.