We may use the demand planning feature to analyze your stock demand needs, determine replenishment requirements and then create orders per a supply plan that will add stock as needed in a time phased manner. This information can be crucial for items with demand that varies and fluctuates throughout the year. Managers plan their inventory needs based on sales projections. these projections can be mathematically calculated, or the projections can be from sales forecasts. Demand and supply planning is the process where the purchasing manager prepares the demand and supply planning activities. The Item 360 dashboard is a feature set up on the purchasing managers dashboard to provide demand planning information, supply information, and historical sales.
Relevant Roles
- Administrator: Confirm supporting features and preferences
- Supply chain manager: Demand planning processes
- Production Manager: Same functionality as purchasing managers.
Calculate demand plan is the process a manager may perform to see anticipated demand. This anticipated demand is determined by analyzing the historical sales or current and future sales. Calculate Supply Plan utilizes demand calculations to provide supply order requirements. And procurement is where your supply requirement is used to drive procurement. Procurement activities may include purchase contracts or submitting a direct purchase order.
Demand is any type of Inventory usage as a result of sales-related transactions. This can be sales order, cash sales, or standalone invoice, as well as work orders in assemblies and usage of raw item components in the assembly of a final product.
Supply is any inventory increases in the warehouse as a result of purchase-related transactions, such as purchase orders or a standalone vendor bill, along with the assembly items required for work orders and assembly completion.