Back Order Prediction In Supply Chain Management Objective Predicing Back Order in Supply Chain Management.
What is Back Order? Back Order Prediction in supply chain management is the estimation of the likelihood that a product will be unavailable when a customer places an order. It involves analyzing historical sales data, inventory levels, lead times, and customer demand patterns to forecast the probability of a backorder situation. By utilizing statistical models or machine learning algorithms, companies can anticipate stockouts, manage customer expectations, optimize inventory, and enhance supply chain efficiency.
Accurate predictions enable proactive actions such as adjusting inventory, expediting deliveries, or finding alternative suppliers, leading to improved customer satisfaction and reduced lost sales.
Data Dictionary Sku (Categorical) Random ID for the product national_inv Current inventory level for the part lead_time Transit time for product (if available) in_transit_qty Amount of product in transit from source forecast_3_month Forecast sales for the next 3 months forecast_6_month Forecast sales for the next 6 months forecast_9_month Forecast sales for the next 9 months sales_1_month Sales quantity for the prior 1 month time period sales_3_month Sales quantity for the prior 3 month time period sales_6_month Sales quantity for the prior 6 month time period sales_9_month Sales quantity for the prior 9 month time period min_bank Minimum recommend amount to stock potential_issue Source issue for part identified pieces_past_due Parts overdue from source perf_6_month_avg Source performance for prior 6 month period perf_12_month_avg Source performance for prior 12 month period local_bo_qty Amount of stock orders overdue Deck_risk: This column is a flag or indicator that identifies the deck risk associated with a particular SKU. Deck risk typically refers to the risk of potential disruptions or issues in the supply chain, such as delays in shipping, production problems, or other challenges that may impact the availability of the product. It highlights the possibility of supply chain-related risks that could affect the availability of the SKU. OE_constraint: The OE_constraint column is a flag or indicator that represents any original equipment (OE) constraints associated with a SKU. Original equipment constraints are limitations or restrictions that arise from the use of specific parts or components in the manufacturing or assembly of a product. It indicates if there are any constraints or limitations on the availability or procurement of the SKU due to factors such as limited supplier options, specialized manufacturing requirements, or exclusive agreements. PPAP_risk: PPAP stands for Production Part Approval Process, which is a standardized process in the automotive industry (and some other industries) for ensuring the quality and conformity of parts used in production. The PPAP_risk column serves as a flag or indicator that indicates the level of risk associated with the production part approval process for a particular SKU. It may reflect the risk of encountering challenges or issues in the approval process, which could impact the timely availability of the SKU. Stop_auto_buy: The stop_auto_buy column is a flag or indicator that suggests whether there is a need to halt or stop the automatic purchasing or procurement of a SKU. It may be triggered by certain circumstances such as changes in demand, quality issues, pricing changes, or other factors that require a reevaluation of the automatic procurement process. This flag helps in identifying situations where the automated procurement system needs to be adjusted or temporarily halted. Rev_stop: The rev_stop column is a flag or indicator that identifies the presence of any revision stops associated with a SKU. Revision stops typically occur when there are changes or revisions being made to a product, such as design modifications, upgrades, or improvements. It indicates whether there are any temporary halts or stops in the production or procurement process due to ongoing revisions. These stops allow for necessary adjustments to be made before resuming production or procurement.