Course Overview
The goal of a supply plan is to match the demand plan. When done effectively supply and demand planning can greatly reduce costs for organizations. When supply and demand do not match, organizational costs rise. If the supply plan does not deliver enough inventory to match the demand plan, sales are lost, labor hours rise, and transportation costs increase. A supply plan that delivers too much inventory increases handling costs, storage costs, lower margins, and obsolescence. These costs are exactly why effective demand planning and supply planning are so critical for an organization to meet its financial goals.
Learning Objectives
- Understand what supply planning is
- See how supply planning and demand planning work together
- Comprehend the value that effective supply delivers to an organization.
*This course references US legislation and statistics.