ABSTRACT
The big picture in Chapter 9: “Demand Planning” showed how the supply chain network splits into a push zone and a pull zone. The location of the push/pull boundary determines whether the operating strategy is build-to-stock (BTS) or build-to-order (BTO). Forecasting techniques for demand planning anticipate product inventory requirements, while order processing and delivery complete the fulfillment of the customer’s order from inventory. Keeping inventory turning throughout the supply chain network is one of the key success factors in operating a great supply chain. This chapter presents a method to manage inventory turns across the supply chain network. In this chapter, you learn how to use push planning methods to convert the demand forecast into item-specific purchase orders and work orders released to drive inventory into the push/pull boundary. You also learn how to use pull planning methods to ensure reliable, predictable inventory matching when specific customer orders are pulled from the push/pull boundary.
