Demand_Planning_RAKIB

Md. Rakibul HassanB.Sc. in Industrial & Production Engineering (IPE)Ahsanullah University of Science & TechnologyCell: 01737856600Email: [email protected]

Supply Chain Management




Demand planner job description➢➢➢➢➢➢➢➢➢➢➢➢➢➢




Inventory Dashboard



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Reliability:Shipment plan = 150 OrderOn-time ex-factory = 120 OrderSo, Reliability = 120/150= 80%

Flexibility:Plan date = 10th MarchBuyer request = 7th March

If ex-factory 7th Mar = FlexibleIf ex-factory 10th Mar = ReliableIf ex-factory Delay = Not Reliable

OTIF (On Time In Full quantity):Out of 150 orders 120 is on time

100 orders in full quantity20 orders in short shipmentSo, OTIF = 100/150 = 66%


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Supply Chain ManagementProcurement progress steps




(Final)

Supply Chain ManagementProcurement Savings

Supply Chain ManagementInventory Turnover

Supply Chain ManagementYarn projection format


T&A


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The difference between a value chain and a supply chain is that a supply chain is the process of all parties involved in fulfilling a customer request, while a value chain is a set of interrelated activities a company uses to create a competitive advantage.

Ex: Like fruits transfers to farmers then wholesaler then retailer then customer but in value chain we add some values like grading then sorting then packaging then cool and storing etc

Supply Chain ManagementCash to cash cycle time

Cash to cash cycle time= DIO+DSO-DPO

Where,DIO= Days Inventory OutstandingsDSO= Days Sales OutstandingsDPO= Days Payable Outstandings

Example:- The inventory held by a business average being on hand for 40 days, and its customers usually pay within 50 days. Offsetting these figures is an average payable period of 30 days. This results in the following cash to cash duration.

Cash to cash days= 40+50-30=60 cash to cash days

This outcomes states that a business must support its expenditures for a period of 60 days

Supply Chain ManagementCoGS

CoGS= Beginning inventory+purchase-ending inventory

CoGS= Unit sold X Cost of unit

Supply Chain ManagementSCOR

SCOR Framework

The Supply Chain Operations Reference model (SCOR) is the world’s leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure.

Employ the SCOR framework at your organization and:

● Increase the speed of system implementations● Support organizational learning goals● Improve inventory turns


Level 1 Processes included in SCOR:

● Plan● Source● Make● Deliver● Return● Enable


Level 1 Metrics included in SCOR:

● Perfect order fulfillment

● Order fulfillment cycle time● Upside supply chain flexibility● Upside supply chain adaptability● Downside supply chain adaptability● Overall value at risk● Total cost to serve● Cash-to-cash cycle time● Return on supply chain fixed assets● Return on working capital

Supply Chain ManagementJust in time (JIT) investment system

Just in time inventory system is one of the recently development inventory management concepts, which assumes that the purchase of inventory has to be just in time of use. Jit refers to process of acquiring material (inventory) as they are needed. Jit reduces inventory by purchasing and storing lower quantities of inventories as much as possible. The objective of jit is to maintain inventory as low as possible. Sometimes, it may even be at zero level. Thus, under jit, the inventories are received in time or purchased in time of use. It is only possible when the supplier can be relied from making the delivery of goods on time without compromising the quality. Generally, in developed countries where communication and transportation system are very efficient, the use of jit is common.

Advantages

The advantages of JIT are as follows.

a. Just in time inventory system reduces the amount of money tied up in inventory of

raw material and finished goods.

b. This systems creates saving of space.

c. It does not required maintaining large inventory storage facilities.

d. Just in time inventory systems minimizes wastage.

e. It helps to improve the labor efficiency.

Supply Chain ManagementJust in time (JIT) investment system

Disadvantages

The disadvantages

a. The effectiveness of this system depends on the co-operation and faith with the

supplier.

b. This systems works well when there is proper knowledge of quality and quantity of

materials needed.

c. There must be some alternative suppliers as the regular suppliers may not be able to

dispatch the material all the times.

Supply Chain ManagementPerpetual inventory system

Meaning of perpetual inventory system

The perpetual inventory system is the way of maintaining the record of inventory in

such a ways that the stock on hand can be ascertained at any time. It emphasizes the

day to day checking of stock and maintains the up to date record. It is a method of

recording inventory after every receipt and issue to facilitate regular checking and

obviate the stocking. It provides the per

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Supply Chain ManagementWhat is Value added?

The value added is the difference between sales revenue and purchase price of the

products and series. It is ascertained by deducting cost of purchase form sales

revenues. In the processes of conversion of raw materials into finished product, it is

required to add value or utility inform of profit. So, sales price of the product is higher

that cost. The excess of market value over the cost of material/input is known as value

added.

If a manufacturing produces goods for Rs 100 and sell of Rs 150, the difference of Rs 50

is the value added. Similarly, if the same goods are sold to the retailer for Rs180, the

value added is Rs30. As such the same goods are sold to the customers for Rs200, the

value added is Rs20. Hence, the total value added becomes Rs100 (Rs50+Rs30+Rs20

or Rs200- Rs100). Therefore value added is the wealth or utility in the product of the

business that a firm creates by its own effort.

Value added= sales revenue and other incomes – cost of budget-in-materials

and services.

Cost of bought-in-includes to cost of materials purchase for consumption and cost of

services includes the cost of services paid for external agencies for using the facilities.

Supply Chain ManagementDifference between cost reduction and cost control

Supply Chain ManagementDistinction between fixed and flexible budget

Supply Chain ManagementPlan A, Plan B, Plan C

THANK YOU

Documents

Demand_Planning_RAKIB