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Forecasting & Supply/Demand Planning
2 Month Lead time from vendors
Want to only carry 2 months of inventory
Would like to be able to identify categories based on turn around time
Would be nice to forecast what work orders are needed for the smaller pieces of wood.
Would like to set up safety stock levels
General
Evaluate each year what is needed
Bulk Purchases at the end of the year
Only one Vendor per Item
They don’t have multiple vendors they would order the same item from.
They receive a big savings for purchasing in bulk
150K - 200K a year
But the downside to this is 28-40% of their cash is tied up in inventory
They currently carry about 6 months of inventory - they’d like to reduce to 2 months.
Only purchase from US and Canada
Very rarely overseas
200 SKUs that they don’t keep in stock
Purchase as special orders as needed.
Blanket Purchase Order
Create based on what they think they need for that year.
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Qty
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On Purchase Order
(Create these POs as needed)
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Remaining
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500k
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200K
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300K
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“Child” Purchase Orders when Items are Shipped from Vendor
2 Month Lead Time
Linked to Blanket Purchase Order
Need to make a payment before it’s received.
90% of total
Process
Shipment 1 of x
Item(s) in transit
Pre Payment Invoice for this shipment
Receive
Confirm Receipt
Manage Short and Overages
Credits or Payments
Shipment 2 of x
Repeat….
Inventory
Warehouses
2 warehouses
Overstock goes to one of these WH
Would like to manage inventory for each WH
One has a yard location
Rack Locations at Warehouse 1
Bulk Storage
Small Bin Locations at Warehouse 2
Phase 1 - Do not track individual bins
This would be too confusing to current emnployees
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