Material planning is all about having the right inventory at the right time.
If we don’t do it right the result can be:
Overstock – Large capital investment go into unnecessary inventory, and difficulties to follow row materials market prices.
Understock – Lost of sales and deservice the company brand name.
WIP – Material planning is also about the inner buffers that we use in organizations to manage WIP (work in process).
Material planning topics (pick a topic):
1. MRP – how it works
MRP is used in many organization to plan the flow of materials. It is mainly used to decide the when and the how much materials we need to buy.
How MRP algorithm works?
How to predict the consumption? using past data? using sales forecast?
More to come.
- How to smartly create forecast using market data and capacity constrains.
- Other material planning methods:
- KANBAN
- Sawtooth model
- Bread man and maybe more.