Setup Best Practices: Supply Planning

Supply planning is a critical business area. When set up and used correctly, supply planning helps a company avoid stock out and reduce both ordering costs and inventory costs.

It is not possible to prescribe one optimal setup of all planning fields as this varies from company to company because of business variables, such as market situation and business strategy. However, there are best practices for selecting options in items cards and global setup fields to help get the company started with timely and cost-effective inventory flows.

The following topics provide best-practice information about how to set up selected planning fields that are key to inventory and supply planning.

To	See
Learn the best practices for selecting the best reordering policy to plan efficiently and economically for an item according to carrying costs and demand patterns.	Setup Best Practices: Reordering Policies
Learn the best practices for specifying selected planning parameters under the defined reordering policy to plan efficiently and economically for an item according to critical elements, such as lead time, carrying costs, and seasonality.	Setup Best Practices: Planning Parameters
Learn the best practices for applying a general supply strategy to all item cards, such as always receiving items one day before they are needed or dampening the system’s reaction to small demand fluctuations.	Setup Best Practices: Global Planning Setup

See Also

Design Details: Supply Planning
Design Details: Planning Parameters
Set Up Complex Application Areas Using Best Practices
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