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Demand Forecast & Material Inventory Control Study for Lighting Products

Author: LiuBing
Tutor: ZhouBingHai；LuoXu
School: Shanghai Jiaotong University
Course: Logistics Engineering
Keywords: demand forecast MRP ERP APO supply chain management
CLC: F426.6
Type: Master's thesis
Year: 2012
Downloads: 102
Quote: 0
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Abstract


Lighting industry is the traditional industry of our country and plays an important role in the development of the state economy. Philips & Yaming Lighting Co., Ltd leads this industry in China. With the booming internal and external economy, the management in the company is being adjusted to get accustomed to the business development. As we all know, market competition has not been the products competition only since long time ago but the management and supply chain competition. Excellent supply chain operation will bring the company healthy cash flow and lower the operational cost and increase the service level.Forecast is to foresee the future status by studying the historical record and current information. Demand forecast is the starting point of supply chain management and appropriate demand forecast is the key for ensuring proper supply chain operation. Though there are various uncontrollable and uninsurable elements during forecasting process, we should still insist exploring scientific forecasting method and making use of the scientific forecasting system to do demand forecast. Philips Lighting Co., Ltd is a famous lighting products supplier in the global.Philips & Yaming Lighting Co., Ltd (P&Y) is one of the main production bases of Philips Lighting Co., Ltd in China. This article aims at finding out appropriate demand forecasting model for P&Y products and studying the linkage technology and process of B2B supply chain management way based on the APO system installation project.After getting the demand forecast and orders from the commercial groups, P&Y plans the production based on MTO methodology and prepare the materials especially with long lead time based on the supply forecast. Therefore, in practice due to inappropriate demand forecast and other various reasons material stock level is always high and covers more than 70% of our total inventory value. Further, aging stock often occurs. This article will make analysis on current material planning operation module based on MRP running methodology and try to find better material inventory control way.In all, this article will study the lighting products demand forecast module and material inventory control way with the background of P&Y inventory control project and APO system installation project.

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