Forecasting Technique

• Quantitative- numerical facts• Time series- past trends• Historical patterns of demand

Planning• Long term strategic planning- management• Sales and operations meeting• Gaps in performance• Aggregate planning- capacity, inventory, stock

outs, inventory• Master production schedule (MPS)- individual

commodities• Linked to the manufacturing- when product

will be demanded

Planning

• Production- master production schedule• Date of batches• Synchronized operations- efficient• Master production scheduler- arrangement• Manufacturing resource planning- effective

planning of all resources• Business Process control system- transactions

Drivers of Supply Chain

• Facilities• Inventory• Information• Transportation

Facilities

• Locations- stored, assembled or fabricated• Production, storage- Kot Lakhpat, Lahore

Inventories

• Raw materials, work-in-process, finished goods• Forecasted demand• Demand Uncertainty- six weeks safety inventory• Minimization of risk• Lead time:– 60 to75 (imported)– 10 to 30 (local)

• Make or Buy decision- quality, expensive

Information

• Role of technological advances• Oracle