How to conduct inventory forecasting - Inventory behavior pattern analysis?

Inventory issues - Traditional solutions in the past

Urgent purchase orders
Seeking additional suppliers
To expedite deliveries, initiate early procurement, early deliveries, and early materials preparation
Frequent material relocations
Monthly inventory checks
Stocking more inventory

Inventory issues - iTEC ERP intelligent solutions

Inventory issues

Internal factors	External factors
Inaccurate scheduling	Frequent design changes
Discrepancies in material accounts	Customer order changes
Production defects	Customer rush orders
Material relocation issues	Inaccurate supplier delivery timelines
Low production efficiency	Incoming material defects

Inventory behavior patterns and inventory level forecasting

▲Behavior patterns of intelligent inventory.

▲Purchase based on dependent inventory level planning.

Intelligent inventory forecasting analysis

Intelligent level utilization - Supply-demand balance

Item	Questions	Causing issues
Audit point 1	Production is stable, but if inventory falls below the minimum safety stock level, it indicates decreasing demand.	Shortage
Audit point 2	As demand varies over time, daily demand must be adjusted over time to maintain inventory levels. Failure to do so can lead to both excessive and insufficient inventory due to falling below the safety stock level. This indicates that demand should be adjusted dynamically based on data.	Fluctuations in inventory levels are caused by changing market demands and time.
Audit point 3	With stable production, if inventory exceeds the maximum safety stock level, it indicates that inventory levels should be adjusted appropriately to avoid excess or shortage issues in the future, which can lead to stockouts or excess materials. Adjusting the procurement point is necessary in such cases.	Excess

Indicator lights display abnormal inventory level conditions

Warning: Presented in a signal light status.

⚑A red light indicates below and above inventory levels.

⚑A yellow light indicates that the short to medium-term forecast predicts insufficient supply and current capacity cannot meet demand.

⚑A green light indicates that the inventory level is within the normal range.

iTEC ERP intelligent inventory management

Offering dynamic inventory levels
Providing real-time inventory
Supplying inventory forecasting analysis
Offering reorder points
Prioritizing lead times for critical components and synchronizing level adjustments.

Adjusting inventory levels synchronously based on changes in procurement or production lead times
Adjusting inventory levels synchronously based on fluctuations in market demand
Adjusting inventory levels synchronously based on changes in product marketing strategies
Providing dynamic inventory levels
Utilizing big data analysis to continuously forecast and analyze past and future (short, medium, and long-term) inventory levels.

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