Poor demand planning in Meizan CLV Company

Abstract

Demand planning is critical step in Sales and Operation Planning process which ensure operation in manufacturing work smoothly, make balance between supply and demand to avoid wasting from overstocking inventory as well as loose customer satisfaction from shortage of stocks. Bursa (1) said that in order to respond to uncertainty of market, demand planning as the key driver in the process to make high demand forecast accuracy with suitable method chosen such as leverage multiple demand signals (sales and order history, shipments, point of sales, new product launching plans, promotions program, syndicated data, competitors’ information, etc.). Meizan CLV Company (Meizan CLV) is manufacturing company in food industry being high competitive market with high market volatility and significant impact from competitors. It requires a good demand planning to ensure smooth operation, optimize costs as well as using working capital efficiently to gain competitive advantage. Meizan CLV has strong sales growth during operation since started in mid-2017; however too high stock level in warehouse will invite some serious issues which affect to smooth of operation as well as long term growth of company. Observing this problem, this study will analyze analyses to find out cause of problems and create solution to solve the exist problem in Meizan CLV.