Demand Planning Methodology in Supply Chain Management

A supply chain is the system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. In Supply Chain Demand planning is a critical business process that impacts Fast Moving Consumer Goods (FMCG) companies’ ability to manage their value chain business performance. Revenues, costs and asset utilization are all affected by the quality, timeliness and accuracy of demand planning. Cleaning History and Reason Code Analysis offer new solutions that can improve the demand planning process and yield business results. A demand planning methodology and few applications have been shown here. The potential of this Demand Planning Methodology is to improve the certainty of demand planning decision making of a FMCG company. This methodology helps to maintain less excess and shortage quantity over the supply chain. Hence save the value lost and improve the Supply Chain Efficiency.
Keywords
Industrial Engineering, Supply Chain Management, Demand Planning Methodology, Winter Model, Forecasting.
1. Introduction
1.1. Variability of Demand:
Demands for any products changes rapidly from period to period, often due to predictable influence. These influences include seasonal factors that affect products, as well as non-seasonal factors (e.g. Promotional or product adoption rates) that may cause large, predictable increases and decline in sales. Predictable variability is change in demand that can be forecasted. Products that undergo this type of change in demand cause numerous problems in the supply chain, ranging from high levels of stockouts during peak demand periods to high levels of excess inventory during periods of low demand. These problems increase the costs and decrease the responsiveness of the supply chain. Supply and demand management have the greatest impact when it is applied to predictably variable products.
Supply chain can influence demand by using pricing and other