Search Results for: forecasting

… above, or some modification of the formula, can be run against each item to determine if the material will be placed in the forecasting engine or instead only reside in ERP or the supply planning engine and be entirely controlled by the consumptive logic settings.
How Companies and Implementers Ignore the Research
System implementers are not adjusting their approach to be considerate of the research in this area. The results for many decades now is consistent in showing that more complex forecasting techniques do not improve forecastability of challenging to forecast items and certainly do not pay off given their

… service level optimizer that provides some fast views into how metrics such as pipeline stock and safety stock changes with service level changes. It also has an alert system, which can be evaluated after each simulation run. Unlike some of the other solutions in this space, MIPO does not perform forecasting, (although their DIM (Demand Intelligence Module) does, however, MIPO uses the forecast to calculate how products will be treated in supply planning.
Thus MIPO requires the forecast from either the ERP system or planning system.
The SmartOps Software Design
After MIPO performs its calculations, SmartOps integrates to either the …

… above the product location. This enables them to plan at the customer or contract (a contract is a special MEIO capability for service parts planning that supports a large piece of equipment such as an airplane or earth-moving construction equipment; the equipment is the “contract”).
The criterion of not forecasting at internal supply network locations is very important. It dovetails with the concept of managing all the inventory-carrying locations as an “inventory pool” and is quite different from the present way of thinking about this topic. Forecasting only at forward locations also has the added benefit of reducing …