Since introducing distribution requirements planning, management at a company has had increased complaints from staff at satellite warehouses that the variances of local demand are being ignored, and they often are unable to meet demand. An effective response from management would be to:
- allow adjustments to the forecast based on input relating to local sales activity.
- permit last-minute changes to the production schedule.
- increase safety stock at the central warehouse of items that are repeatedly out of stock.
- implement an ABC inventory management strategy.