Demand Planner Interview Questions and Answers

The most important tabs for demand planner are sales history, forecast, inventory, and promotions.

• Sales history tab helps in analyzing past sales data to forecast future demand.

• Forecast tab is used to create a demand plan based on historical data and market trends.

• Inventory tab helps in managing stock levels and ensuring availability of products.

• Promotions tab tracks the impact of marketing campaigns on demand and sales.

To manage or reduce inventory, companies can implement strategies such as demand forecasting, optimizing order quantities, improving supply chain visibility, and implementing just-in-time inventory management.

• Implement demand forecasting to accurately predict customer demand and adjust inventory levels accordingly

• Optimize order quantities by using economic order quantity (EOQ) models to determine the most cost-effective order size

• Improve supply chain visibility by collaborati...read more

Forecast should be communicated clearly and in advance to vendors to ensure smooth supply chain operations.

• Provide accurate and reliable forecast data

• Communicate forecast in a timely manner

• Discuss any changes or updates to the forecast with vendors

• Use a collaborative approach to ensure alignment between vendor and company expectations

• Consider vendor lead times and production capacity when providing forecast

• Provide feedback to vendors on their performance based on forecast acc...read more

Safety stock is a buffer inventory kept to mitigate the risk of stockouts due to unexpected demand or supply chain disruptions.

• Safety stock helps to ensure that there is enough inventory to meet customer demand even during unexpected events.

• It is calculated based on factors such as lead time, demand variability, and service level.

• The level of safety stock required varies depending on the industry, product, and supply chain complexity.

• For example, a company that sells seasonal...read more

Forecasting models are built by analyzing historical data, selecting appropriate methods, and considering factors like seasonality and trends.

• Collect and analyze historical data to identify patterns and trends

• Select appropriate forecasting methods such as time series analysis, regression analysis, or machine learning algorithms

• Consider factors like seasonality, trends, market conditions, and external influences

• Validate and adjust the model based on accuracy and performance me...read more

Inventory control happens through monitoring, managing, and optimizing the levels of stock in order to meet demand while minimizing costs.

• Regularly monitoring inventory levels to ensure they align with demand forecasts

• Implementing inventory management systems to track stock levels and movement

• Setting reorder points and safety stock levels to prevent stockouts

• Analyzing historical data and trends to forecast future demand and adjust inventory levels accordingly

• Collaborating wit...read more

Forecasting methods are techniques used to predict future demand based on historical data and trends.

• Qualitative methods (e.g. market research, expert opinion)

• Quantitative methods (e.g. time series analysis, regression analysis)

• Causal methods (e.g. econometric models, leading indicators)

• Collaborative forecasting (e.g. involving input from sales, marketing, and production teams)

Analysis of trend involves identifying patterns and changes over time to make informed decisions.

• Identify key data points to track trends over time

• Use statistical methods to analyze trends and forecast future outcomes

• Consider external factors that may impact trends, such as market conditions or seasonality

• Visualize trends using graphs or charts for easier interpretation