Cash Flow Inventory Tutorial – Production Planning

Editorial Note: We are an inventory management software provider. While some of our blog posts may highlight features of our own product, we strive to provide unbiased and informative content that benefits all readers.

Production planning is the planning of production and manufacturing according to demands or forecast. Right production planing keeps the right flows between supply and demands and prevent empty stocks as well as overstocks.

Automated Production Planning in Cash Flow Inventory

Production plans are generated according to your forecasting. Initially if you don’t enter (When added product list) forecasting values or you have enough stocks (No need production at this moment ) you don’t see any production plans. But, after using some months our software automatically calculated forecasting values and generates production plans

Cash Flow Inventory generates production plans automatically according to your demand forecasting. Demand forecasting is automatically calculated according to Safety Stock , Reorder Quantity, Max Lead Days and Avg Lead Days.

How Cash Flow Inventory automatically generates your production planning :

Safety Stock = ( Maximum daily usage X Maximum lead time ) – ( Average daily usage X Average lead time )

Reorder Quantity (Reorder Point) = Safety Stock + ( Lead time in days X Average daily usage)

If( Current Stock <= Reorder Quantity) {

Added the products into production plans (Quantity Calculated = Safety Stock – Current Stock)

}else{

Not need to production plans(this product at this time)

}