Anticipating sales discussion: Over the last decade, many industries have been t

Question

Anticipating sales discussion:

Over the last decade, many industries have been transformed by a process in which goods which were formerly kept in inventory in anticipation of sales are now often created at or near the actual time of consumption in reaction to sales. (answer concise and in bullet formant under each one please) (we are discussing forecasting and inventory management,  EOQ(economic order quality, Safety Stock)

1.What examples of industries or products can you think of that have undergone this change?

2.What might be the pros and cons from the standpoint of SCM?

3.What about from the standpoint of the customers?

4.What specific technologies are you aware of that might facilitate these transformations now and in the future?

Explanation / Answer

Answer :

1. Sometimes few firms and companies keep the stock in the inventory to generate sale anticipation. Manufacturing firms like Nissan in Smyrna, Tennessee maintain low levels of inventory. Iphone uses anticipation sales for their phones.

2. The pros and cons for holding excess inventory are as follows
Pros

Cons

3. There are improved processes and technologies that help to remove gross imbalances that exist between supply and demand. The technologies help to set inventory targets. The adoption of metrics, service level, cash to cash cycle time are few useful methods to take care of the balance of inventory. There are improved programs that help firms with supply chain orientation. There are tools like IO that make the process simpler. There are advanced planning and scheduling systems along with optimisation software that are useful.

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