Inventory Management

Running head : Inventory Management

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Inventory Management

As more and more products become available in the market , customer loyalty to one brand has decreased . Similarly , competition , production supply , and consumption dynamics keep shifting therefore business firms have to linearly program their procedures not only to match demand characteristics , but also to cut costs in warehousing of non-moving inventory and lost business opportunities . Forecasting has therefore become a crucial and complex venture especially considering that sales are harder to predict and sales and

distribution channels have continued to flourish . The Voluntary Inter-industry Commerce Solutions (VICS through its Collaborative Planning , Forecasting and Replenishment (CPFR Committee has come up with principles which aim to develop business guidelines and roadmaps for various collaborative scenarios , which include upstream suppliers , suppliers of finished goods and retailers which integrate demand and supply planning and execution (VICS , 2010 In this essay , the author aims to demonstrate how Coca Cola 's experience with inventory forecasting supports the principles set forth by CPFR

The CPFR Committee formulates principles and processes that business entities that fall within a supply chain can employ so that they can partner with their trading partners in a number of functions so that the efficiency of the manufacturing and supply chain can be increased (Sheffi , 2002 . Business organizations can manage a single shared forecast of product demand and commit to this forecast so that risks can be shared as a result of the removal of constraints in the supply process (Sheffi , 2002...