Executive Summary There is basic parts selection logic of the availability maximizer, which includes the cost of the part. Service parts management must be able to deal with zero demand situations. Introduction This approach and program were written expressly for a low demand environment at the dealer level. Most independent demand inventory algorithms ( EOQ,…
Executive Summary MCA has been acquired. What will some of the critical MCA solutions contribute to supply chain planning software, and what will happen to the MCA product? Introduction Servigistics recently acquired MCA Solutions. This is a significant development as the two companies were the top two software vendors in the service parts planning space….
Executive Summary One can use backorders or the order fill rate. We compare a recent paper and its use of backorder service measurement and why backorder is superior. Introduction The order fill rate is the most popular service level measurement method in supply chain management. However, there is another service level measurement based upon backorders….
Executive Summary What is a heuristic algorithm, and how can a heuristic be compared against an algorithm, and what is a meta-heuristic? Introduction to Heuristic Algorithms This post documents an email discussion between myself and Wayne Fu regarding the heuristic algorithm. Question for Wayne Fu “What is a heuristic based optimization algorithm, or a heuristic…
Executive Summary SAP created a partnership with MCA that was designed to get into the service parts planning market. We cover the outcome of this partnership. Introduction The pathway is not clearing for SPP as the successes have been few and far between. However, there is a solution. Bringing Up SAP SPP in the Market…
Executive Summary How the aftermarket car parts market in the US works. The major problems with automotive dealer networks for aftermarket car parts. Introduction In our previous post, we discussed the problems with how dealers dominate automotive service parts websites. We also explained how this is inefficient and why these websites should be centralized and…
Executive Summary How SAP has been busy pushing a solution that does not exist as a distinct product. An analysis of SAP PLM. Pushing SAP PLM For some time, SAP has been promoting its product lifecycle management (PLM) solution. PLM is a problematic term that more than a few companies have had a problem defining….
Executive Summary MTBF or mean time between failure is how service parts are forecasted. Service parts demand can use dependent department. It is not that common for companies to use MTBF. Introduction to MTBF Service parts for products can be predicted based upon installed base and usage. The mean time between failure or MTBF calculation…
Executive Summary What is Performance Based Logistics? We cover why Performance Based Logistics is unlikely to happen based on the entities involved’ institutional incentives and orientations. Introduction Performance Based Logistics (PBL) is a much-discussed concept in the military and among defense contractors. We will discuss a range of issues with PBL, from its trend to…
Executive Summary Supersession is how parts are set up as interchangeable or substitutable. There are different types of part supersession. Where product interchangeability functionality is set up in SAP APO. Introduction: Getting the Heart of Supersession Supersession and part substitution is a critical component to supply chain planning that is only increasing due to the…