Demand forecasting and inventory management are often seen as completely separate tasks, frequently done by different people, who often don't talk to each other! However, effective inventory management depends critically upon suitable forecasts. Forecasting processes should be designed to support inventory management and inventory management processes need to recognise the inherent uncertainties in forecasts.
By bringing the two topics together, this course enables delegates to make choices that will deliver benefits for the business as a whole. The course offers a framework for understanding the forecasting and inventory management processes and for selecting the appropriate tools and techniques.
The course fee includes one night's accommodation.
Who Will Benefit?
Sales/Marketing Directors, Sales Managers, Logistics Managers, Forecasters, Inventory Managers, Master Schedulers, and Planners. The course assumes delegates will already have a basic understanding of the roles of sales, marketing and logistics within a business. Some knowledge of basic statistical concepts is helpful but not essential.
What Will The Course Cover?
- Why forecast and what's a good forecast?
- Chance, variation and basic statistical concepts
- Simple statistical forecasting techniques
- Subjective versus objective forecasting
- Forecasting as a business process
- Causal factors
- Scenario modelling and forecasting pyramids
- Overview of advanced statistical techniques
- Product segmentation and improving forecast accuracy
- The role and cost of inventory
- Buffering uncertainty
- Classification and demand analysis
- Replenishment control techniques
- Safety stock, order quantities and the K-curve
- MRP and DRP
- Analysis and reporting
- Implementing a control process
What Will Delegates Gain?
The course is designed to focus on the strategic aspects of forecasting as well as the practical aspects of producing a forecast. It will provide an understanding of how to:
- focus on the real variables in the market;
- understand how the forecast is performing;
- establish an effective, routine forecasting process.
- improve service levels;
- reduce inventory investment;
- manage risk and vulnerability.