Search Results for: supply-planning

  • How Convincing is the MIT DDMRP Study?

    ByPrimary Researcher

    … This requires the use of forecasted demand. Burbridge (1980) states that it is impossible to make accurate forecasts for long periods. Therefore, incorrect forecasts are fed into MRP systems in place of actual demand causing nervousness.
    The forecasts are not incorrect. Each forecast has a specific inaccuracy. MRP and other supply planning systems account for this inaccuracy with safety stock, which is not mentioned in this quotation. There are just many problems with the assumptions accepted by the authors Leo Ducrot and Ehtesham Ahmed in this quotation.
    Safety Stock Can Amplify Instability?
    Among the proposed solutions to handle nervousness, the …

  • How Did DDMRP Convert So Many Vendors?

    ByPrimary Researcher

    … with additional innovation by the Demand Driven Institute, to create a supply planning process that encourages and promotes Flow in your supply chain. – SCM Connections
    This is amusing because if an entity is friendly towards DDMRP, it is acceptable to point out that it borrows from Lean. The pull is basically Lean, so that is a second reference to Lean. DDI uses the same description on their website, where SCM Connections received this quote’s information.
    DDMRP combines some of the still relevant aspects of Material Requirements Planning (MRP) and Distribution Requirements Planning (DRP) with the pull and visibility …

  • Why Custom Development Should Be Expected for Nearly All Applications

    ByPrimary Researcher

    … about this is the person making the selection expected a vendor to provide this. He could not believe it when I said it has to be a custom development.
    The reason for this is simple. I don’t think there is a general understanding of how generic the functionality in supply planning applications actually is. Most of the differentiation is at the procedure, and it turns out that most of the complex procedures or highly differentiated procedures don’t work very well in practice. Once you look behind the scenes in the various applications, most vendors are offering something very …

  • How to Achieve Lean Supply Chain

    ByPrimary Researcher

    … t match what the Lean consulting firms say that Lean accomplishes.
    This article will cover Lean from a realistic perspective instead of presenting a fantasy world about how to implement Lean.
    Lean Planning Versus MRP
    Procedural versus Lean planning is one of the most enduring debates in the area of supply planning. Lean is both a philosophy and several techniques. Lean adherents propose that the standard mathematics of everything from the usual supply and production planning methods to Economic Order Quantity are incorrect and can be improved upon by reducing order quantities.
    Within Lean, there are several techniques, with reorder …

  • How to Mix Reorder Points and MRP in SAP APO

    ByPrimary Researcher

    … in this chapter would apply to any supply planning application.

    Here is a screenshot is taken from the Brightwork Research & Analysis Press book Multi-Method Supply Planning in SAP APO. It shows the association of each product location combination with either the advanced method (either CTM – Capable to Match or the optimizer) or consumption-based replenishment methods.
    In SAP APO, some methods need to work with what I refer to as method modifiers. In SAP APO, or more specifically, SAP SNP (the supply planning module of APO), reorder point planning is a heuristic method modifier. The reorder point is just

  • When to Use Lean or Reorder Point Planning Versus MRP

    ByPrimary Researcher

    Executive Summary

    The question of when to use Lean versus MRP is what sets part of the planning strategy.
    We cover when to use reorder points versus MRP planning.

    Video Introduction: When to Use Lean or Reorder Point Planning Versus MRP
    https://youtu.be/_7CKeVHY_zs
    Text Introduction (Skip if You Watched the Video)
    The question of when to use Lean versus MRP is critical to determine when to use a non-forecast based method of supply planning (reorder points) and forecast based planning (like MRP). Many companies do not have a method of segmenting their reorder point planned from …

  • When to Use Reorder Point Planning

    ByPrimary Researcher

    Executive Summary

    The question of when to use reorder point planning relates to several important factors.
    We cover when to use reorder points versus forecast based planning.

    Video Introduction: When to Use Reorder Point Planning
    https://youtu.be/_dICKGCHxEw
    Text Introduction (Skip if You Watched the Video)
    When determining when to use reorder point planning, it is critical to determine when to use a non-forecast based method of supply planning like reorder points and forecast-based planning, like MRP. Some product location combinations cannot have their forecast accuracy improved sufficiently to make them worth planning with a forecast best …

  • How to Implement Lean Supply Chain

    ByPrimary Researcher

    … to what Lean is. There are also several different ways of practicing Lean, so it’s difficult to say definitively how all its practitioners recommend using the philosophy. Secondly, some corporate initiatives are called Lean but are not, in fact, based upon Lean principles, further eroding the actual concept of Lean as it is generally understood. There are also examples of Lean being used as an excuse to push responsibility onto one’s suppliers.

    As I see it, Lean, as applied to supply planning software, really boils down to several main thrusts:
    The (Lack of) Honesty of How Lean is

  • What is Lean Supply Chain Definition?

    ByPrimary Researcher

    … Japanese should never forget that these techniques were born in America and generated by American efforts.”
    In terms of why Lean is such a strong trend, a trend that extends far beyond manufacturing, I believe that Lean has been driven in large part by dissatisfaction in the quality of the output from supply and production planning systems. This dissatisfaction can stem anywhere from MRP’s logic being overly simplistic to where implementing companies have run into problems implementing supply planning methods more complex than MRP/DRP. However, it should also be noted that all of the methods employed in …

  • How Does SAP IBP Work?

    ByPrimary Researcher

    … IBP projects indicates that little of these “aspirational” items are being used.
    What is SAP IBP Used For?
    However, one clear thing is that IBP is not merely used for S&OP. It is not clear that S&OP is its primary use.
    One can also perform mainline demand and supply planning in IBP, and mainline demand and supply planning projects have a lower failure rate than S&OP projects. S&OP projects can bring software live, but it does not mean that an S&OP process is followed. Sales, for example, is notorious for not necessarily wanting to play …