INMT5503 - Week 6

To maximize inventory levels to avoid stockouts

To balance supply and demand

To reduce labor costs through outsourcing

To eliminate the need for forecasting entirely

Retailers manually place orders with suppliers based on internal forecasts

Suppliers rely solely on historical data without monitoring sales

Suppliers are responsible for monitoring inventory and triggering replenishment

VMI eliminates the need for automated systems due to product standardization

Centralized Procurement and Freight Regulation

Collaborative Planning, Forecasting, and Replenishment

Customer Pricing and Financial Reporting

Coordinated Production and Forecasting Review

It reduces the number of suppliers required

It increases customer demand

It limits the overall throughput time of the system

It improves the flow of information across departments

To reduce the number of suppliers in the supply chain

To align manufacturing and procurement lead times with market demand

To increase inventory levels in anticipation of demand

To centralize all logistics activities in a single location