Elements and Performance Criteria
- Assess projected demand
- Information/data from sales plan or stock movement is analysed
- Projected high and low volume periods are determined from the analysis of sales plan and/or stock movement data
- Seasonal nature of stock demand is determined from the analysis of sales plan and/or stock movement data
- Required inventory levels at different production and sales cycle stages are determined from the analysis of sales plan and/or stock movement data
- Assess variables that impact on optimum stock levels
- Stock manufacturing/supply and consignment delivery lead times are determined
- Internal processing and distribution times are determined
- Spoilage and obsolescence times are calculated as required
- Maximum stock carrying capacity is assessed
- Physical and human resources are assessed in relation to projected required stock levels
- Contingencies are developed for abnormal distribution stoppages/slow-downs to supply chain
- Determine optimum inventory levels
- Production and sales cycle stages are correlated to stock manufacturing supply and distribution lead times
- Safety stock levels are calculated
- Optimum inventory levels are identified
- Monitor optimum inventory levels
- Inventory benchmarks are continually compared to current and known future sales turnover/production requirements
- Adjustments to inventory levels are undertaken in accordance with reassessed sales turnover/production requirements, workplace procurement processes and within scope of authority
- Changes and/or requests for adjustments to inventory levels are documented in accordance with workplace policies
- Resources are assembled in accordance with identified optimum inventory levels