Monday, August 12, 2019

Module Review 3 Essay Example | Topics and Well Written Essays - 1500 words

Module Review 3 - Essay Example The control of integrated operation by the CPFR is performed through strategic planning, management of demand and supply, execution and analysis. In planning and strategy, the CPFR sets the goals of a firm, with distinctive outlines of the scope of the roles, responsibilities, procedures, and checkpoints. This Joint Business Plan spots the hindrances of effective demand and supply, and eliminates these obstacles through inventory policy changes, introduction of products, promotions, and opening or closing of branch stores (Sattar, 2012). The management of demand and supply focuses on sales forecasting and order forecasting. Sales forecasting projects the demand of consumers at a certain sales point. On the other hand, order forecasting determines the orders and deliveries depending on the sales forecast (Diederichs, 2009). The execution role of the CPFR in integrated operations constitutes the implementation of the firm’s forecast into the firm’s real demand and fulfillment of the orders through production, stocking of stores, delivery and shipping. In addition to execution, the CPFR analyses the planning of operations and calculates the returns of the business to determine the achievements of the strategic plans, or to expose the need for the development of more alternative strategies (Choi, Hui & Yu, 2013). Inventory is a critical visible asset for most firms, and determines the size of a firm’s purchasing power. The inventory levels are subject to focus by many company shareholders and executives. Despite this, the focus has reduces drastically, causing sever implications on the supply chain. The administration of inventory is necessary in the planning of inventory requirements and management of uncertainties that may occur in a business. The use of Pareto inventory practice enables the management to establish the amount of inventory on the low demand items that indicates the shortage of a product, the need for transitions or

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