Search Results for: inventory-optimization

  • How Parallel Processing for the SNP Cost Optimizer Does not Work

    ByPrimary Researcher

    … divided so that the interdependencies are accounted for.
    Decomposition: Decomposition is covered in more detail in this article. Almost all supply and production planning methods have some decomposition. The only method I am aware of that does not – and this is with a caveat which I will discuss momentarily – is inventory optimization and multi echelon planning (MEIO)

    How Inventory Optimization & Multi-echelon Planning Works
    MEIO looks at the entire supply network at every iteration, decides to create a recommendation, and then moves onto the next iteration with the inclusion of the recommendation from the last iteration. Therefore MEIO’s decomposition …

  • How to Understand The History of MRP and DRP

    ByPrimary Researcher

    … this article and related Brightwork articles, see this link.
    Go to top
    What is the Sequence of Adoption of Supply Planning
    The sequence of adoption was:

    MRP/DRP (which I count as one as they must be combined to provide both inbound and outbound supply planning)
    Heuristics
    Allocation
    Cost optimization
    Inventory optimization and multi-echelon planning is the final supply planning method to be commercialized in packaged enterprise software. (It is not covered in this book but is included in my other book, Inventory Optimization, and Multi-Echelon Planning Software).

    How These Methods Were Developed
    Except for MRP/DRP, which …

  • How to Understand KANBAN’s Connection to Supply Planning and KANBAN in SAP ERP

    ByPrimary Researcher

    … production planning can share the responsibility of created planned production orders.

    Some applications — such as SAP SNP, incorporate production resources into the application such that semi-realistic planned production orders are passed to the production planning system (which will always plan in more detail).
    However, other applications, such as most inventory optimization applications (which are also supply planning applications), do not plan production.

    Supply Planning’s Use as a Term
    The term supply planning is quite underused.

    The most common reason for this is that the specific supply planning method has colloquially become substituted for the term.
    Therefore, it is …

  • How to Use Reorder Point Planning in SAP ERP and SAP APO

    ByPrimary Researcher

    … compare reorder points across product categories and locations.
    Enhanced master data maintenance capabilities.
    Easy and simple integration to SAP to populate the fields.
    The fact that these fields in SAP are stable and not likely to change in future releases.
    SAP itself follows this correct parameter management approach when integrating inventory optimization and multi-echelon planning Vendor SmartOps.

    Manual or Externally Calculated Reorder Point Planning in SAP ERP
    Once the external program produces values, or if the reorder points are to be manually determined, these are the fields that are populated.

    Setting the MRP Type to ND stops MRP from …

  • Forecasting References

    ByPrimary Researcher

    … blogs/planet-analog-designline-blog/4231183/Product-proliferation-is-driving-me-crazy-and-we-do-it–too-
    7 Secrets of Sales Forecasting, Right90
    Sheriden, William A., “The Fortune Sellers,” John Wiley & Sons, 1998
    Snapp, Shaun,” Software Approaches for Improving the Bill of Materials,” Brightwork Research & Analysis Press, 2012
    Snapp, Shaun, “Inventory Optimization and Multi Echelon Planning Software.” Brightwork Research & Analysis Press, 2012
    Snapp, Shaun, “Supply Planning with MRP, DRP and APS Software.” Brightwork Research & Analysis Press, 2012
    Star schema, Wikipedia, February 16 2012
    https://en.wikipedia.org/wiki/Star_schema
    Sun, Jinping (Editor), and Thomas D. Lynch (Editor), “Government Budget …

  • Supply Planning References

    ByPrimary Researcher

    … and Determining Dependent Requirements. https://help.sap.com/saphelp_46c/helpdata/en/f4/7d2a8f44af11d182b40000e829fbfe/content.htm.
    SAP. Comparison of Planning Models. https://help.sap.com/saphelp_scm41/helpdata/en/de/7c5c3c3806af06e10000000a11402f/content.htm.
    Sherbrooke, Craig C. “METRIC: A Multi-echelon Technique for Recoverable Item Control. RAND Corporation, 1966.`
    Snapp, Shaun. Inventory Optimization and Multi-Echelon Planning Software. Brightwork Research & Analysis Press, 2012.
    Strassmann, Paul A. A Plant Warehouse System with Variable Lead Times and Variable Re-Order Levels. Management Technology, 1962.
    Tilly, Richard and Frank O. Smith. The Road to Manufacturing Success: Common Sense Throughput Solutions for Small Business. CRC …

  • How MCA Solutions Should be Remembered

    ByPrimary Researcher

    … in Philadelphia, I worked on an MCA implementation for a year. During that year, I learned quite a bit about their application, used their software, read through their documentation, and interacted with MCA consultants.  My interaction with MCA’s people and the product was how I first became educated in inventory optimization and multi-echelon planning (MEIO). This is a topic on which there is also a blog. I have a book coming out that highlights several vital features in MCA’s product that help demonstrate concepts related to MEIO (MCA screenshots are included in the book, but they will …

  • Forecasting Vendor Profiles

    ByPrimary Researcher

    … was started in 1978 and offers a wide variety of supply chain applications. JDA has 37 offices with 3,000 employees and is a combination of brands including i2 Technologies, Manugistics, E3, Intactix and Aurthur.
    https://www.jda.com
    ToolsGroup
    ToolsGroup offers unique probability-based supply chain planning (SCP) and inventory optimization solutions that allow companies to master even large, heterogeneous, or demanding supply chains. On the demand side, they incorporate best-of-breed demand modeling, order frequency forecasting, and demand sensing technology. On the supply side, they offer multi-echelon inventory optimization and replenishment planning.
    https://www.toolsgroup.com …

  • How to Set SNP Inventory Overage Alerts

    ByPrimary Researcher

    … not adjust the value in the TSL.
    Even though a client is using the optimizer, the TSL should still be used to drive alerts. SAP offers the following way to set the TSL value.

    The most well-known method for managing the TSL is to populate it with an external system, such as an inventory optimization tool.
    In this case, the value is placed into the Location Product Master. Another way, as can be seen below, is to use options such as option five above, which sets the TSL to the Maximum Stock Level + Safety Stocks.
    The Best Way …

  • Good Guidelines for Optimization with Spreadsheets

    ByPrimary Researcher

    … optimization mathematics for the various optimizations in different supply chain spheres is in the public domain.  It added the optimizer mathematics, but this work was most likely taken from published papers with a few tweaks based upon some clients’ needs.  I have reviewed many optimization papers, both in cost and inventory optimization, and there is a high similarity between the mathematics employed for each supply chain domain.
    The Benefit of This Approach
    I believe there are problematic cost optimization projects worldwide that could be improved by following this approach.  The issue, of course, is that it would take time and …