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Best Practices in Demand and Inventory Planning: Food & Beverage

March 31, 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 food & beverage 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.
In this paper, we review

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

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