One-Click Supply Chain: Integrated Demand Planning & Inventory Control

good evening I'm Kunal Jetta and by profession I am a demand planner for castor inventory controller and Sales

and Operations planning today I'm going to talk about a model which I have made that has synced demand planning sales

and operations and inventory controlling all together I call it the beginning of one-click supply chain here we are going

to discuss about a demand plan wherein the example used is of a manufacturer who sells juices shakes and yogurts

across Africa Middle East North America Asia Pacific Australia New Zealand Europe India Indian subcontinent South

America or Latin America these are also bifurcated and region level and finally we have a combination of the product at

the location so this forecast is basically derived from the demand that is the orders sold in the specific

period along with the end of the month back orders which were actually orders from customers but we were not able to

fulfill and execute them so we call it a demand driven forecast the total demand for the month of jan was 1015 and so on

and so forth the forecast is used derived through the exponential smoothing method where the alpha is 0.3

and the error the absolutes and the squared errors are derived mathematically

and I'm sure everyone is aware about this model this very well-known method we can toggle between the demand at all

the levels and even at the combination levels and this is the best demand derived out of the statistics for the

product at the region and at the combination of both and parallely we have also drawn the sales and operations

plan of the unique factors of product and the region showing the consumption for the entire year

the last closing month and its forecast and we have also derived the error the variance in percentage and the best

forecast of the beginning of the new month and this is a specific indicator provided or the specific option provided

for the sales and marketing team during the snop made they can using their expertise or you know schemes or any

orders which are in pipeline or any projects that they are going through they can increase or decrease the

quantity and the reason can be selected here appropriately to have a robust figure and this is how we are going to

do it for 370 there is no update so we can select the option of no change in forecast we have changed let's change it

here to 790 so there is an increase of 35 quantities where it updates that the forecast is changed and here you can

have a selection of why it is change regular target and then we have some exponential moment in this product for

example we make it directly almost twice of this number and says updated near we can have the remark

or whether it is a distributor bulk order or an institutional sale expected from a big tender so on and so forth

this is how we can update and have you know a one-click supply chain dashboard we also have the provision of finding

out who has been the highest seller across the period and who has been the lowest seller and what has been their

what has been their contribution in the consumption okay so product wise region wise and the

consumptions finally we also have synched the inventory controlling part along with the demand planning

forecasting and sales and operations where we have the unique combinations we have SQ level we have regional level and

we have supply point level stock and in transit and they are stock levels minimum carrying seven days talk reorder

carrying 15 days talk base or optimum level carrying the 30-day stock that is one month's coverage and maximum is one

and half month because the products that we are dealing with are perishable products they are expiry controlled

products and they do have shelf life so we should not be keeping too much of stock or as we know there are chances of

the stock getting close to expiry or expired and we will bear you know losses and consequences further that this

indicates the level of stock the monthly average the daily consumption of apple juice at Africa Middle East and the open

orders of apple juice at Africa Middle East and weather we actually need to replenish the quantity now this is a

very interesting part replenishment quantity can only be given if the stock goes below or equals to the reorder

level that's when I read or and I replenish the stock so here we have 69 which is then being reduced by 27 more

so whatever we have is less than 45 and that's why it is taking the stock back to base level and keeping the stock

level at base level it has to replenish the quantities by 48 numbers so that's how we derive on the inventory

controlling part at SK and regional level and even the supply points these are nothing but the distribution centers

or the the agencies or the supply points of this particular manufacturer maybe a warehouse or a clearing and forwarding

agent or cross consignment agent or a distributor and finally just to touch base a hypothetical sales data or

consumption data has been prepared to support this algorithm and also the end of the month back orders which is

basically a support to have the demand driven forecast so that's all today just to you know close this I would like to

specifically have a small synopsis on what the file talks about is a demand planning using the method of the

explanation of smoothing the forecast is demand driven @sq and regional level and the Alpha considered is 0.3 to begin the

forecast width and can be modified using the market trend the sales and operations where we have consumption

forecasts fir'aun's gap highest lowest contributors provision for updating new forecasts with selective reasoning is

available we have inventory control management of talk on hand plus in transit and this is basically the view

is provided at supply points with levels of inventory statistically calculated and having optimum coverage to reduce

sales risk and stock out situations the assumed product categories will be juices shakes yogurts

the regions will be Africa Middle East and the rest of ones are updated here and that's it from my end I hope you

like this project and thank you and have a good evening