Supply Chain Management for Vector Valves Ltd

Supply Chain

Contents
1. Introduction.............................................................................................................................................3
Forecasting and demand management.........................................................................................................3
Understanding Customer relationship and Expectation and Values.....................................................3
Demand forecasting.............................................................................................................................4
Forecasting..................................................................................................................................................7
Demand management..............................................................................................................................7
Forecasting methods...............................................................................................................................7
Short range demand on forecasting........................................................................................................8
Weighted Average methods.................................................................................................................8
Linear regression.................................................................................................................................9
Exponential smoothing......................................................................................................................10
Forecast accuracy..............................................................................................................................12
Master scheduling......................................................................................................................................13
Master production schedule and production plan...................................................................................13
Master scheduling decision....................................................................................................................13
MRP and delivery promise....................................................................................................................14
Inventory control.......................................................................................................................................15
Nature of the inventory control..............................................................................................................15
Need of inventory control......................................................................................................................15
Inventory control techniques.................................................................................................................17
Fixed order quality................................................................................................................................17
Economic order quality.........................................................................................................................18
Making steps of ABC analysis...............................................................................................................18
Control based on ABC classification.....................................................................................................20
Conclusion.................................................................................................................................................21
References.................................................................................................................................................21

List ofFigures
Figure 1-Dependent and independent demand................................................................................6
Figure 2-Analyzing the order product normal distribution..............................................................7
Figure 3-Planning the order stock system.......................................................................................8
Figure 4-Planning Assemble ordering process................................................................................8
Figure 5-master production planning.............................................................................................15
Figure 6-Initial stage of material required planning......................................................................16
Figure 7-Customer account of the material of supply chain demand............................................17
Figure 8- Inventory control of the planning process.....................................................................18
Figure 9-Buffer inventory supply chain demand operation...........................................................19
Figure 10-Inventory control of the supply chain demand of normal distribution.........................20
Figure 11-Ordering process of inventory control demand............................................................21

1. Introduction
The aim of this project is to implement and analyze the victory valves Ltd Company
using supply chain management system. Division of vector valves which specifies Murry
Engineering Firm. The manufacture of the valves company cans which specifies in the USA and
the UK Company for the markets in Europe. The vector valves company that can assign different
kind of department for the propose of improving the business of the inventory management for
the main role and responsibility on managing Directors, REG FOX sales manager, Peter nuttall
Finance Director, Engineering Directors, manufacturing manager of the company.
This research’s main objective is to understand and analyze the vector valves supply
chain management process which can use the three methods that includes, the forecasting and
demand management, master scheduling, inventory management of the system. And finally for
analyzing the Vector's major approach to master planning and inventory control and recommend
improvement so it shall be investigated.
Forecasting and demand management
The forecasting of the market place where there exists suppliers who supply the raw
material, parts of the assemblers, and they also assemble the completed product followed by
shipping the products in a large quantity to its distributors. The distributors helps in distributing
the completed products to its retailers. The retailers sell the received products to their customers.
Thus, it is the consumers who are the end users/ final consumers. There even exists some
competitors for competing the similar marketplace with same products or substitute products.
The demand management contains the understanding of basic market and the target of
customer’s expectations, then the value’s definition and demand forecasting and demand
planning’s fundamental overview (CARTER, 2011).
Understanding Customer relationship and Expectation and Values
Forecasting of the customer’s exception values, which are used for the critical importance
for the outbound bycustomer logistics system. Value the increasing requirements of effective
demand management of supply chain system (HITT, 2011).The customer who is aware of the
types of forecasts which are required to understand the collaboration amount trading partners can
support the complete process of forecasting and demand management (Reimann&Ketchen,

2017). Find the primary steps for order fulfillment process, and understand how the effective
order management could create value for the firm along with its customers. Additionally, the
customer service meaning must be realizedby understanding its significance forthe logistics and
supply chain management system ("Special Topic Forum onResources and Supply Chain
Management", 2013).
Demand forecasting
Demand forecasting has been used to enable the vector valves companyto take several
business decisions like production process planning, ordering raw material, managing the funds
and price deciding for every single product to deliver the customer (Svensson, 2010). The
demand forecasting of the vector sales of the standardary valves in 500 types of products. The
customer can order the product for delivery within the demand value of two weeks after placing
the order. Consider the sales by type of valves ranging from £500K and most popular to about
£10K; it is lower volume type of the forecasting demand ("Special Topic Forumon Power in
Supply Chain Management", 2015).
Finding the forecast demand on the new valve sales on 1995, it will analyze 70 percent which is
used for designing and 30percent is used for made to order (Tachizawa& Wong, 2015).
Nature of Demand and Supply chain system
Analyzing the demand supply chain’s demand which contains the following two types,
 Dependent demand
 Independent demand
Independent demand has been used for the normal distribution of the final product pattern
demands.Dependent demand has been used for the Demand pattern of the highly variable type
components and materials of the product (Priem&Swink, 2012).

Figure 1-Dependent and independent demand (slack, Jones and Johnston, 2019).
Agnate
Normal distribution is,