Supply Chain Enterprise System Architecture Concepts — (3)

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The second article of this series conveys some of the domain knowledge, mainly sales forecast and inventory management. Today, I will talk about order management.

It looks like a very simple process for customers placing an order, then system processing order, then shipping, and receiving goods, but in fact, it is not.

1. Auto-placing order

• The automatic order placement model is the most common because the forecasting model can fit and well track the sales trend of this product as long as the sales volume of the product is stable or fluctuates steadily with the season. Then the model is further modified according to the other parameters of the product, such as ordering cycle, safety stock, existing inventory order quantity, seasonality promotion and etc.

2. Manual-placing Order

• Manual Ordering is a supplementary form of automatic ordering
• It is usually used when we want to fulfill the rigid purchase requirements of the manufacturer.
• We may not only order those products that are about to be out of stock but also add some other products that are not out of stock.
• There are different ways to…