Our People
Mark Nudi
July 2020
Materials Control Manager
San Jose, CA
![](https://www.valin.com/sites/default/files/styles/asset_image_small_size/public/Mark-N-July-2020-EOTM_2_1.jpg?itok=aNlUhXOc)
The tool considers 165 items and provides the following information.
- Current inventory quantity by item and dollar value
- Open sales order by month based on sales order release date and current customer promise date (3 months forward)
- Open inbound by month based on current factory committed ship dates (3 months forward)
- Forecasts of the two largest Valin semiconductor customers broken down by month
The information is combined with 2 years of historic sales data and reviewed a minimum of two times per week and then updated each week with current data. This keeps the inventory levels each month at the minimum required with no over purchases. Using the tool Mark designed, Valin can project the month-end inventory value for these items for the current month and three months in the future.
The tool provides the opportunity to review possible inventory spikes in the coming months. Once the outcome of the formula is reviewed, the best course of action can be determined. Examples include stopping the placement of new purchase orders, canceling, or pushing out deliveries with the supplier. The Inventory Forecasting Tool was especially helpful when Mark discovered that a primary customer’s forecast was 30% incorrect on average over several weeks. This information was passed to the customer and they made corrections. This tool allows Valin to make educated forecasts keeping inventory at the needed levels while satisfying customer needs.