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Basic Demand Planning

To project aggregate demand for production planning

In demand planning estimates of customer requirements and capacity limitations use an aggregate plan to match the required resources. The demand plans of the organization will link strategic goals and objectives with the production plans.

This course explains and discusses various actions due to the planning horizon when managing demands for products to manufacturing and inventory.

Objectives: The purpose of the course is to provide you with insights into how to ensure demand planning which is needed to coordinate the supply, production and distribution functions in an efficient and professional manner.

Participants: This course is for you who need a basic introduction to the subject demand planning. You work with these issues as an inventory operator, economist, logistics engineer, production planner, purchaser, production technician or with quality and construction.

Qualifications: No previous knowledge is required, but it is preferable if you have some work experience.

Training Method: Basic Demand Planning is a Premium course and is studied over the internet via our e-learning platform Instant education. Read more about the training method E-learning - Premium courses.

Course Length: Approximately 15 hours active study time, depending on previous knowledge. Each student has access to the course for 6 months.

Price: 339 Euro / student
376 USD / student

Prices excluding VAT.
For large-scale education projects request quotation.

Online price:

324 EURO / student
360 USD / student

Prices excluding VAT.

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Course contents:

Part 1

Managing the Operation

Planning for and controlling the resources used in the process to get the most value out of them.

Forecasting and Planning

Forecasting is a prelude to planning.

Nature of Demand

There are two types of demand, independent and dependent.

Demand Management

Demand management is the function of recognizing and managing all demand for products.

Demand Forecasting

Forecasts depend upon what is to be done.

Characteristics of Demand

There are some characteristics of demand that influence the forecast and the particular techniques used.

Characteristics of Forecasting

Forecasts have four major characteristics or principles.

Part 2

Interfaces in Distribution Chain

Physical distribution provides a bridge between marketing and production

Production and Distribution Chain

There is a pattern of inventories functioning as buffers between links in the distribution chain.

Inventory Management

Good inventory management is essential for the company’s result and the customers’ satisfaction.

Demand Ordering Systems

The important question is when to place a replacement order therefore some rules for reordering are need.

Order Point System

When the quantity of an item on hand in inventory falls to a predetermined level an order is placed.

Safety Stock

If it is necessary to provide some protection against a stock-out, safety stock can be added.

Variation in Demand during Lead Time

The pattern of demand distribution will differ for different products and markets.

Periodic Replenishment

The quantity on hand of a particular item is determined at specified, fixed-time intervals, and an order is placed.

Part 3

Production Planning, Master Production Scheduling, and Sales

The relationship between production planning, master production schedule, and sales.

Aggregate Production Planning

The aggregate plan specifies how the company will work for the next year within existing facility constraints.

Use of Organizational Resources

The input from functional areas to the aggregate plan has conflicting objectives for the use of the resources.

Preparing Aggregate Plans

Preparing the aggregate plans is dynamic step by step process new information becomes available.

Capacity Management

Capacity management occurs at all levels of the planning process.

Capacity Planning

The process of determining the resources required to meet the priority plan.

Making the Production Plan

Production planners must devise a plan to satisfy market demand with available resources.

Developing a Master Production Schedule

The plan must satisfy customer demand, be within the capacity of manufacturing and be within the guidelines of the production plan.

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