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  Home  Inventory Control Manager

⟩ Explain who determines the optimal frequency for producing or ordering products?

☛ A cross-functional team or

☛ Only production planning or sourcing managers?

Several factors impact effective inventory planning. For example, marketing campaigns can play a role alongside sourcing. So a cross-functional team should set production and ordering schedules. Production alone determines lot sizes, usually based solely on minimizing production costs. By weighing all factors and using a sales and operations planning process (S&OP), cross-functional teams often reduce the company's replenishment stock by 50 percent and ensure that the right products are available for big promotions.

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