Executive Summary There are several ways of solving a supply chain optimization problem with CPLEX. These settings are made in both supply planning applications as well as off-the-shelf optimizers. There is both a simplex method and a duplex method. Introduction The solution procedure is the optimization method that is applied. I often describe and differentiate…
Executive Summary In the supply chain, sensitivity analysis is related to S&OP. External optimizers are available for sensitivity analysis, and we cover how this all works. Companies that do not perform sensitivity analysis can be in the dark about how many capital improvements in any one constraint will improve their operations. The Definition of Supply…
Executive Summary Using spreadsheets to explain optimization is beneficial. We cover the advantages and disadvantages of using spreadsheet optimizers. The Popularizing of Optimization Mathematics with Spreadsheets In researching different optimization mathematics, I have observed how research papers do not include spreadsheet models and their documents. Spreadsheet models can be purchased with several books that focus…
Executive Summary Redeployment is a planning thread that repositions inventory to locations where it has a higher likelihood of being consumed. Redeployment applies to more to slow-moving inventor and can be considered a form of inventory analysis and a way of reducing obsolete inventory. Redeployment differs by product type. Introduction to Redeployment Redeployement is the…
Executive Summary Problem decomposition is how the problem is divided up for processing. There are major problems in decomposition for the supply chain optimization in SNP. There are important benefits to decomposition. One test that can be used is running the optimizer for a single location in the supply network. Introduction In finding a way…
Executive Summary There are general misconceptions regarding the MRP Type. The MRP Type controls many important items in APO. Introduction The MRP.Type is a field on the Material Master in ERP which does two things: It controls the planning method (whether it’s MRP, MPS, Reorder Point Planning, etc..) It also serves as a “switch” that…
Executive Summary The term master production schedule changed through time and differs in critical ways from the term MRP. Four dimensions make up the MPS, but there are questions about whether an MPS is still necessary. A Strangely Named Term The Master Production Schedule or Master Production Schedule was always a problematic term. Firstly it…
Executive Summary What is the history of fake forecasting? We cover the relationship to supply chain forecasting. Introduction This blog primarily focuses on supply chain forecasting. However, it is interesting occasionally to observe other areas of forecasting to learn from it. Wall Street is an exciting area to watch because the most money in business spent on…
Executive Summary Inventory carry cost is a controversial topic because of the assumptions. We cover how to set the inventory carry cost properly. Video Introduction: Setting the Right Inventory Carry Cost Percentage Text Introduction (Skip if You Watched the Video) Inventory carry cost is necessary for the supply chain as it allows a company to…
Executive Summary Transportation Lanes are critical master data for APO. We cover the Transporation Lane logic, the logic of the Transportation Lane view, Product Specific Transportation Lanes, how to Transportation Costs control the flow of material with the cost optimizer in SNP, Transportation Lane lot sizes in SAP, and more. Introduction: How Transporation Lanes are…