Logistics plan

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•The future logistics requirements are based on forecasts, customer orders and sales promotions.
•The forecasts are based on sales and marketing inputs in conjunction with historical activity levels.
•Customer orders  include current orders, future committed orders, and contracts.
• Mathematically, logistics requirements can be computed as

Forecasts(sales/marketing inputs, historical trends) + Customers orders(current orders, future committed orders, contracts)+ Promotions(sales promotion, advertising)= Period demand – Inventory on hand- Planned receipts = Period logistics requirements.

•Logistics requirements must be integrated with both capacity constraints and manufacturing requirements to achieve the best performance.
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