Manufacturing
Demand Planning
Business Need
A leading furniture manufacturer needed a solution for demand planning and inventory management, to minimize lost sales due to inventory shortages while optimizing inventory levels to reduce holding costs.
Solution
The CA team developed a Demand Planning tool that utilizes multiple projection methods to generate accurate forecasts. The tool leverages data such as safety stock, desired service levels, lead times, and historical data to produce precise demand forecasts. This comprehensive approach ensures that inventory levels are optimized, reducing both stockouts and excess inventory.
Highlights
Accurate demand projections using multiple methodsIntegration of Safety Stock Desired Service Levels and Lead TimeHistorical Data AnalysisOptimization of Inventory Levels
Outcome
The Demand Planning tool significantly improved inventory management by providing accurate forecasts and minimizing lost sales due to inventory shortages. It also helped reduce holding costs, resulting in more efficient inventory levels and better alignment with actual demand.
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