Professional Documents
Culture Documents
PMM - Section A - Group 6
PMM - Section A - Group 6
Management
Group 6
Praveen S | M102-18
Sanjeev Kumar N | M175-18
Siddharth K. Sharma | M190-18
Vijay Saam T | M192-18
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The idea behind the use of VMI method towards sale companies is to implement “pull” control concept: manufacturing and production is controlled by market
demand, its trends and seasonal nature, in other words Actual Sales of SC.
• From the below figure, actual orders placed by SC with producers disappear. Moreover planning the quantity to be shipped to sales companies is the
responsibility of the producer.
• The system used is called the Electrolux Forecasting and Supply system (EFS-95), functioning on the IBM AS/400 hardware package.
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• But all data such as sales orders, supply level, forecasts, etc. Are however transmitted and shared with suppliers.