Scope

The objective of this case is to translate the demand forecast into actual stock, such as components, subassemblies, or end items, relative to the Customer Order De-coupling Point (CODP). The demand forecast, which the logistics manager usually calculates, based on the input of the sales force, is the input for the planning process. The planning engine generates purchase and production order advice to meet this demand. This case deals with a cross-functional flow that runs from planning to goods in stock.

For example, this case is applicable to nearly every industry, although placing expensive products in stock is uncommon.