When we planning the inventory, we define principles, methods and measures that will be applied later in life of the company. This affects the raw materials and semi-finished as well as the finished products.
The forecasting is a closely related statistical discipline to the inventory keeping. With his help we may have some hints about what is to come in terms of our demand, inventories, costs and capacity utilization.
When developing the inventory management, we strive to enable the company to meet as many customer needs as possible while keeping the “money in inventory” to a minimum. This requires analyzing and learning about demand, seasonality, inventory and ordering costs, and a lot of other information, as we can only make inventory decisions after we have learned about how the company and its market work.
The forecasts cover the entire sub-science of statistics. With its help, we know not only tomorrow’s weather, but also how the demand for our company’s products or services will change in the future and thus the utilization of our capacities. It is useful because you can tell us when you need to invest more capital in stocks (preparation for peak or off-season periods) and when you can reallocate the money to other activities such as development.
The vendor-managed inventory methodology is one of the most advanced sales systems of our time. The point is that the “wholesaler” manages the stocks of server units directly connected to the final consumer. This is useful because a reseller that carries out this activity usually has a much larger field of view in terms of the market and how it works, on the other hand, it is better able to reallocate its resources. Establishing and managing such a system is a long-term decision that can benefit all members of the supply chain.