Augmenting Network Design with Inventory Optimization. Dr. John Bell Dr. Sean Willems

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Augmenting Network Design with Inventory Optimization. Dr. John Bell Dr. Sean Willems"

Transcription

1 Augmenting Network Design with Inventory Optimization Dr. John Bell Dr. Sean Willems

2 Supply Chain Network Design Building a supply chain includes network decisions about the geographic location and size of facilities Decisions are global in nature Have to be revisited every 1-2 years Include wide array of variables and data Supported by analysts and software systems Implementation is often most difficult stage Impacts transportation and inventory decisions

3 Traditional Location Analysis Facility location and network models were often usually independent from inventory optimization Solutions decentralized with too many locations Computer capabilities and algorithm development have proven ability of hybrid approaches Location-Inventory Problems

4 Joint Consideration of ND & IO Current models and algorithms can simultaneously consider Network Design and Inventory optimization World-Class firms have implemented joint Network Design & Inventory Optimization approaches Consider the cost, service and risk implications Understand the influence of multiple echelons of inventory

5 Multiple Classes of Inventory There are several classes of inventory: Safety stock Due to forecast, supply and manufacturing variability Anticipatory stock Cycle stock Early arrival stock Marketing stock Obsolete stock Pipeline stock Prebuild stock Promotion stock We should not treat all inventory as equal We need to measure inventory by class in order to improve supply chain performance Safety stock inventory is the most difficult to solve

6 Multi-Echelon Inventory Optimization Spans the Entire Supply Chain Inv SUPPLIER PLANT Inv Inventory Op.miza.on DC STORE Inventory is optimized across the supply chain, recognizing interrelationships between echelons This results in less inventory overall, and lowers supply chain costs Allows for more informed supply network decisions

7 Multi-Echelon Modeling Illustration Three potential inventory policies for a simple serial supply chain Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Sprinkle it everywhere Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Get me fired Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Optimal

8 Real Supply Chains Are Complex Outsourcing production is an option Product can be converted Multiple classes of demand exist

9 Real Chains Are Very Complex Procure Reynosa Finished Goods 51 Deploy Subassembly 67 VMI (K) Procure Reynosa Subassembly PH 57 Procure 43, 66,

10 Initial Beauty M-E Implementation: Cosmetics The Cosmetics Supply Chain M-E Model Blank WIP Raw Materials Intermediate Subassemblies Colored WIP Packaging Materials Finished Good Packing Ship to Canada DC Ship to US DC Promo.on Demand US Customer Demand Byron Alvarez Cosme.cs Planner

11 How Did Multi-Echelon Do It? Safety Stock Days Previous Single Stage Process New Mul. Echelon Process Op.mizing levels and placement of safety stocks Resulted in lower material and finished good days on hand; higher work- in- process days 0 Matls WIP FG US DC FG CAN DC Safety Stock Dollars ($K) Previous Single Stage Process New Mul. Echelon Process Yielding a significant reduction in dollar investment Matls WIP FG US DC FG CAN DC

12 Replenishing from China direct from US vs. sourcing from US to EU to China Eur Dist US Mfg China Demand When does it make sense? What s the impact?

13 Strategic Model Example

14 Replenishing from China direct from US vs. sourcing from US to EU to China

15 Postponement: Replenishing Bulk to China from US & Packaging in China Bulk to China

16 US China Replenishment Scenarios 15, , Cycle Stock Pipeline Stock 13, , Safety Stock ($) 11, , , , , , , , $14,062 $2056 $11,696 $1862 $10,915 $1778 3, , , EU Supplies China US Supplies China (FG) US Supplies China (Bulk) Logility, Inc.

17 US China Replenishment Scenarios 15, , Cycle Stock Pipeline Stock 13, , Safety Stock 11, , ($000) 9, , , , , $2,560 $865 4, , , , EU Supplies China US Supplies China (FG) US Supplies China (Bulk)

18 Questions to consider How do you think about network design and inventory optimization today? How can you jointly leverage ND and IO? Where is the biggest opportunity in your supply chain? Is it cost reduction? Is it service improvement? Is it resiliency?

19 Final Thoughts What? Consider joint Network Design and Inventory Optimization approaches in your next SC redesign Why? The cost, service, and resiliency of your supply chain can be greatly improved How? Internal and external approaches are available

20 Augmenting Network Design with Inventory Optimization Dr. John Bell Dr. Sean Willems

The Next Generation of Inventory Optimization has Arrived

The Next Generation of Inventory Optimization has Arrived The Next Generation of Inventory Optimization has Arrived Cutting-edge demand classification technology integrated with network optimization and simulation enables cost reduction and increased inventory

More information

RapidResponse Inventory Planning and Optimization Application

RapidResponse Inventory Planning and Optimization Application This document outlines the RapidResponse Inventory and Optimization Application Kinaxis RapidResponse allows companies to concurrently and continuously plan, monitor, and respond in a single environment

More information

Meeting the Challenges of Supply Chain Management

Meeting the Challenges of Supply Chain Management Meeting the Challenges of Supply Chain Management Brand owners require innovative product configuration strategies to optimize supply chain effectiveness By John R. Kenney, Jr., ModusLink Corporation Price

More information

MULTI-ECHELON INVENTORY MANAGEMENT. Stijn Rutjes & Martijn Cornelissen

MULTI-ECHELON INVENTORY MANAGEMENT. Stijn Rutjes & Martijn Cornelissen MULTI-ECHELON INVENTORY MANAGEMENT Stijn Rutjes & Martijn Cornelissen 1 dinsdag 15 november 2011 AGENDA Inventory Management Multi-Echelon environment Problem definition Risk pooling Safety stock determination

More information

Electronics Components Manufacturing: The Path to Excellence

Electronics Components Manufacturing: The Path to Excellence Electronics Components Manufacturing: case study The Path to Excellence Successful electronics manufacturers design their supply chains around their key stakeholders specifically, customers, suppliers

More information

Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage

Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage Nine Ways Food and Beverage Companies Can Use Supply Chain Design to Drive Competitive Advantage From long-term, strategic decision-making to tactical production planning, supply chain modeling technology

More information

SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES

SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES SUPPLY CHAIN (SC) DRIVERS AND OBSTACLES Drivers of SC performance Facilities Inventory Transportation Information Sourcing Pricing The discussion here is mainly concerned with how these drivers are used

More information

Supply Chain Design and the effects on shipping

Supply Chain Design and the effects on shipping Supply Chain Design and the effects on shipping Agenda Introductions Supply Chain Evolution LLamasoft - Company Supply Chain Guru - Product Shipping Demonstration Q & A Introductions Tom Davies Director

More information

Information Sharing in Supply Chain Management: A Literature Review on Analytical Research

Information Sharing in Supply Chain Management: A Literature Review on Analytical Research Information Sharing in Supply Chain Management: A Literature Review on Analytical Research Hyun-cheol Paul Choi California State University, Fullerton, CA In this paper, we reviewed the area of upstream

More information

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store

Inventory basics. 35A00210 Operations Management. Lecture 12 Inventory management. Why do companies use inventories? Think about a Siwa store 35A00210 Operations Management Lecture 12 Inventory management Lecture 12 Inventory management Inventory basics Inventory basics Pros and cons of inventory Inventory numbers Inventory management in practice

More information

Strategic Framework to Analyze Supply Chains

Strategic Framework to Analyze Supply Chains Strategic Framework to Analyze Supply Chains 1 Andy Guo A Strategic Framework for Supply Chain Design, Planning, and Operation Part I: Understand the supply chain Part II: Supply chain performance Part

More information

Making Strategic Decisions with Oracle Advanced Planning. An Oracle White Paper September 2006

Making Strategic Decisions with Oracle Advanced Planning. An Oracle White Paper September 2006 Making Strategic Decisions with Oracle Advanced Planning An Oracle White Paper September 2006 Making Strategic Decisions with Oracle Advanced Planning SUMMARY Strategic decision making is more important

More information

Chapter 9 Managing Inventory in the Supply Chain

Chapter 9 Managing Inventory in the Supply Chain Chapter 9 Managing Inventory in the Supply Chain Inventory is an asset on the balance sheet and inventory cost is an expense on the income statement. Inventories impacts return on asset (ROA) Inventory

More information

Considerations. Change your viewpoint. Understand and pursue The Primary Metrics

Considerations. Change your viewpoint. Understand and pursue The Primary Metrics Considerations Change your viewpoint o After response time compression in your manufacturing/operating platform o You re no longer a manufacturing company that happens to manage inventory..you re an inventory

More information

Oracle Value Chain Planning Inventory Optimization

Oracle Value Chain Planning Inventory Optimization Oracle Value Chain Planning Inventory Optimization Do you know what the most profitable balance is among customer service levels, budgets, and inventory cost? Do you know how much inventory to hold where

More information

Managing End-to-End Supply Chain Costs in a Down Economy

Managing End-to-End Supply Chain Costs in a Down Economy Managing End-to-End Supply Chain Costs in a Down Economy Jane Barrett Research Director, AMR Research jbarrett@amrresearch.com 617 350 1727 2009 AMR Research, Inc. Page 1 Jane Barrett Research Director,

More information

Supply Chain development - a cornerstone for business success

Supply Chain development - a cornerstone for business success Supply Chain development - a cornerstone for business success Agenda 1. Supply chain considerations 2. Benefits of a developed SCM strategy 3. Competitive advantage by using a LSP 4. CRM/SCM key to business

More information

Innovations in Manufacturing Supply Chain. Alex Yap Senior Director, Manufacturing Strategy, APAC

Innovations in Manufacturing Supply Chain. Alex Yap Senior Director, Manufacturing Strategy, APAC Innovations in Manufacturing Supply Chain Alex Yap Senior Director, Manufacturing Strategy, APAC New Customer Expectations RESPONSIVNESS VISIBILITY CUSTOMIZATIONS SELECTION VALUE ADDED SERVICES SOCIALIZE

More information

COORDINATION IN THE SUPPLY CHAIN: VENDOR MANAGED INVENTORY IS THE WAY TO GO

COORDINATION IN THE SUPPLY CHAIN: VENDOR MANAGED INVENTORY IS THE WAY TO GO www.sjm.tf.bor.ac.yu Serbian Journal of Management 1 (1) (2006) 41-47 Serbian Journal of Management COORDINATION IN THE SUPPLY CHAIN: VENDOR MANAGED INVENTORY IS THE WAY TO GO R. Piplani * Center for Supply

More information

Seeing Clearly will improve your SCOR

Seeing Clearly will improve your SCOR Seeing Clearly will improve your SCOR ProVision Supply-Chain Operations Reference Models 26261 Evergreen Road, Suite 200 Southfield, MI 48076 248/356-9775 FAX 248/356-9025 E-mail info@proformacorp.com

More information

SCM. Logistics, Service, and Operations Management daeki@korea.ac.kr

SCM. Logistics, Service, and Operations Management daeki@korea.ac.kr SCM Logistics, Service, and Operations Management daeki@korea.ac.kr Key concerns Demand/supply/lead time variability Inventory & Transportation Information technology Technological advances Level of service

More information

CSCMP Level One : Cornerstones of Supply Chain Management. Learning Blocks

CSCMP Level One : Cornerstones of Supply Chain Management. Learning Blocks CSCMP Level One : Cornerstones of Supply Chain Management Learning Blocks Level one training will consist of eight learning blocks: 1. Supply Chain Concepts 2. Demand Planning 3. Procurement and Supply

More information

Software for Supply Chain Design and Analysis

Software for Supply Chain Design and Analysis Software for Supply Chain Design and Analysis Optimize networks Improve product flow Position inventory Simulate service Balance production Refine routes The Leading Supply Chain Design and Analysis Application

More information

abf Avercast Business Forecasting The Trusted Name in Demand Management. Software Features: Enterprise Level Software Solutions for: The Cloud

abf Avercast Business Forecasting The Trusted Name in Demand Management. Software Features: Enterprise Level Software Solutions for: The Cloud Avercast Business Forecasting Avercast Business Forecasting (ABF) is powered by an industry leading 187 forecasting algorithms. ABF systematically measures each algorithm against up to five years of historical

More information

Are Your Inventory Management Practices Outdated?

Are Your Inventory Management Practices Outdated? Fulfillment March 1, 2005 Key Facts Traditional inventory management practices are being made obsolete by increasing global sourcing and contract manufacturing, more dynamic product life cycles, and multi-channel.

More information

MUST CHEMICAL COMPANIES OUTSOURCE LOGISTICS TO SAVE MONEY?

MUST CHEMICAL COMPANIES OUTSOURCE LOGISTICS TO SAVE MONEY? A ChemLogix White Paper MUST CHEMICAL COMPANIES OUTSOURCE LOGISTICS TO SAVE MONEY? Companies too often outsource rather than build upon their own experienced personnel and proven processes. by Steve Hamilton

More information

Supply Chain Optimization

Supply Chain Optimization Optimization and improvement of supply chain from purchase of raw materials to delivery of end product. Methodology and Case studies will be presented. John Oleson - OCI The Benefit of Supply Chain Optimization

More information

Minimize overspend by gaining visibility of total demand

Minimize overspend by gaining visibility of total demand Minimize overspend by gaining visibility of total demand Patti Seymour 9th Annual Clinical Trials Supplies and Packaging October 10-12, 2011 BioProcess Technology Consultants www.bptc.com Supply and Demand

More information

Risk Pooling Strategies to Reduce and Hedge Uncertainty

Risk Pooling Strategies to Reduce and Hedge Uncertainty Risk Pooling Strategies to Reduce and Hedge Uncertainty Location Pooling Product Pooling Lead time Pooling Capacity Pooling Risk Pooling 風 險 共 擔 : 整 合 供 應 以 減 少 因 需 求 波 動 而 缺 貨 的 風 險 D ~N(, ) D +D ~N(

More information

Logistics Management SC Performance, SC Drivers and Metrics. Özgür Kabak, Ph.D.

Logistics Management SC Performance, SC Drivers and Metrics. Özgür Kabak, Ph.D. Logistics Management SC Performance, SC Drivers and Metrics Özgür Kabak, Ph.D. Outline Supply Chain Performance: Achieving Strategic Fit and Scope Competitive and supply chain strategies Achieving strategic

More information

Manufacturing Flow Management

Manufacturing Flow Management Manufacturing Flow Management Distribution D Distribution Authorized to Department of Defense and U.S. DoD Contractors Only Aim High Fly - Fight - Win Supply Chain Management Processes Information Flow

More information

Supply Chain Management and Value Creation

Supply Chain Management and Value Creation Supply Chain Management and Value Creation YAN Xi 1, KANG Canhua 2 School of Economics, Wuhan University of Technology, Wuhan 430070, China 1. cassie_yan@163.com, 2.kchhua@whut.edu.cn Abstract: In recent

More information

Materials Management - Inventory Management

Materials Management - Inventory Management SRM Inventory Requestor Description - The SRM Inventory Requestor will use the SRM shopping cart functionality to reserve material kept in inventory Ability to Request Replenishment of Inventory via SRM

More information

Areté Inc. Avail Fact Sheet. Production Scheduling. Syrup Scheduling. Raw Material Scheduling

Areté Inc. Avail Fact Sheet. Production Scheduling. Syrup Scheduling. Raw Material Scheduling Areté Inc. Avail Fact Sheet Avail is an integrated suite of Supply Chain planning tools created to work within the beverage industry. Avail is the latest in a long line of proven Areté products that have

More information

After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2.

After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2. After this unit you should be able to answer following questions A. Concept Questions B. Short notes 1. Inventory and Inventory management 2. Lead time 3. Reserve stock and safety stock 4. Reorder level

More information

Load Building and Route Scheduling

Load Building and Route Scheduling Load Building and Route Scheduling for SAP ERP Optimization Excellence Advanced 3D Load Building and Dynamic Route Scheduling Designed for use with SAP ERP Maximize your SAP ERP capabilities for shipping

More information

Supply Chain. cinagement. IStlGS USO OS.S. Fourth Edition. Donald J. Bowersox David J. Closs M. Bixby Cooper John C. Bowersox.

Supply Chain. cinagement. IStlGS USO OS.S. Fourth Edition. Donald J. Bowersox David J. Closs M. Bixby Cooper John C. Bowersox. USO OS.S Supply Chain IStlGS cinagement Fourth Edition Donald J. Bowersox David J. Closs M. Bixby Cooper John C. Bowersox Michigan State University Me Graw Hill About the Authors iv Preface v PART ONE

More information

4 Key Tools for Managing Shortened Customer Lead Times & Demand Volatility

4 Key Tools for Managing Shortened Customer Lead Times & Demand Volatility ebook 4 Key Tools for Managing Shortened Customer Lead Times & Demand Volatility 4 Key Tools for Managing Shortened Customer Lead Times & Demand Volatility S U P P L Y C H A I N Content Introduction Tool

More information

Chapter 14 Inventory Management

Chapter 14 Inventory Management Chapter 14 Inventory Management Overview Nature of Inventories Opposing Views of Inventories Fixed Order Quantity Systems Fixed Order Period Systems Other Inventory Models Some Realities of Inventory Planning

More information

Ch.1 Purchasing & Supply Chain Management

Ch.1 Purchasing & Supply Chain Management Module 1 : Purchasing Process. Ch.1 Purchasing & Supply Chain Management Edited by Dr. Seung Hyun Lee (Ph.D., CPM) IEMS Research Center, E-mail : lkangsan@iems.co.kr Definition of Supply Chain. Definition

More information

It is concerned with decisions relating to current assets and current liabilities

It is concerned with decisions relating to current assets and current liabilities It is concerned with decisions relating to current assets and current liabilities Best Buy Co, NA s largest consumer electronics retailer, has performed extremely well over the past decade. Its stock sold

More information

LINKS Tutorial #4: Forecasting. Katrina A. Zalatan & Randall G. Chapman

LINKS Tutorial #4: Forecasting. Katrina A. Zalatan & Randall G. Chapman LINKS Tutorial #4: Forecasting Katrina A. Zalatan & Randall G. Chapman Your LINKS is evaluated on financial, operating, and customer-related results. Planning is the process you go through to make decisions

More information

Practical Applications for Clinical Demand and Operations Planning

Practical Applications for Clinical Demand and Operations Planning Practical Applications for Clinical Demand and Operations Planning Randy Schwemmin Genentech Clinical Demand and Supply Planning Biotech Supply Chain Academy 8 November 2011 Agenda Vision for Clinical

More information

Five Tips to Achieve a Lean Manufacturing Business

Five Tips to Achieve a Lean Manufacturing Business Five Tips to Achieve a Lean Manufacturing Business Executive Overview Introduction The more successful manufacturers today are those with the ability to meet customer delivery schedules while maintaining

More information

Inventory Optimization for the Consumer Products Industry

Inventory Optimization for the Consumer Products Industry Inventory Optimization for the Consumer Products Industry Highlights Helps improve service levels and reduce working capital costs by enabling improved inventory planning and optimization Dynamically adjusts

More information

Demand Driven Supply Network A Consumer Goods Client Case Study. Speaker: Chris McDivitt, Capgemini

Demand Driven Supply Network A Consumer Goods Client Case Study. Speaker: Chris McDivitt, Capgemini Demand Driven Supply Network A Consumer Goods Client Case Study Speaker: Chris McDivitt, Capgemini What is Demand Driven Supply Network (DDSN)? A system of integrated technologies and business processes

More information

EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY

EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY EVERYTHING YOU NEED TO KNOW ABOUT INVENTORY Introduction Inventory is considered the necessary evil of the supply chain. In fact, there has been a whole movement; lean manufacturing that has tried to reduce

More information

Critical Success Factors for Consumer Electronics & Appliances Companies to Meet Today s Top 3 Issues

Critical Success Factors for Consumer Electronics & Appliances Companies to Meet Today s Top 3 Issues Critical Success Factors for Consumer Electronics & Appliances Companies to Meet Today s Top 3 Issues Prepared exclusively for Sage Software by Industry Directions, Inc. www.industrydirections.com Table

More information

Scope of Supply Chain Management (SCM)

Scope of Supply Chain Management (SCM) Scope of Supply Chain Management (SCM) Session Speaker Prof. P.S.satish 1 Session Objectives To understand the scope of Supply Chain Management To compare different activities of Supply Chain Management

More information

Supporting the Perfect Order: Collaborative S&OP and VMI

Supporting the Perfect Order: Collaborative S&OP and VMI Supporting the Perfect Order: Collaborative S&OP and VMI October 30, 2012 Frankfurt, Germany Gary Neights Director, Product Management The Multi-Echelon Supply Chain Plan Your Supplier s Suppliers Your

More information

Supply Chain Excellence Differentiating Capability for Success. October 21, 2014

Supply Chain Excellence Differentiating Capability for Success. October 21, 2014 Supply Chain Excellence Differentiating Capability for Success October 21, 2014 Sonoco is a Global Packaging Company Founded in 1899, Sonoco is a $5 billion global provider of consumer packaging, industrial

More information

Inventory Management and Risk Pooling. Xiaohong Pang Automation Department Shanghai Jiaotong University

Inventory Management and Risk Pooling. Xiaohong Pang Automation Department Shanghai Jiaotong University Inventory Management and Risk Pooling Xiaohong Pang Automation Department Shanghai Jiaotong University Key Insights from this Model The optimal order quantity is not necessarily equal to average forecast

More information

www.pwc.com Leveraging your inventory assets

www.pwc.com Leveraging your inventory assets www.pwc.com Leveraging your inventory assets January 2013 Leveraging your inventory assets Using inventory as both a service enabler and a cost reduction opportunity The pressure on utilities, from both

More information

Five Inventory Core Competencies That Can Make or Break Your Competitive Advantage

Five Inventory Core Competencies That Can Make or Break Your Competitive Advantage An Executive White Paper Five Inventory Core Competencies That Can Make or Break Your Competitive Advantage Key Best Practices in the New Inventory Optimization Center of Excellence An Executive Whitepaper

More information

Stock Management Methods in SAP: Some distinctive differences between IM, WM, and EWM

Stock Management Methods in SAP: Some distinctive differences between IM, WM, and EWM Stock Management Methods in SAP: Some distinctive differences between IM, WM, and EWM John Gardner [ CHAVONE JACOBS ASUG INSTALLATION MEMBER MEMBER SINCE: 2003 [ ALLAN FISHER ASUG INSTALLATION MEMBER MEMBER

More information

Job Manager for Tool and Die Shops

Job Manager for Tool and Die Shops Job Manager for Tool and Die Shops What makes Tool and Die Shops unique? First, most orders are for a unique Tool or Die. No two Jobs are alike. The Job is a one of a kind job, not a mass production type

More information

Oracle Value Chain Planning Service Parts Planning

Oracle Value Chain Planning Service Parts Planning Oracle Value Chain Planning Service Parts Planning Do you need to manage a complex after sales service supply chain with all its unique challenges? Do you need to improve part availability and customer

More information

Driving Supply Chain Stability and Efficiency

Driving Supply Chain Stability and Efficiency 2015 Midwest Supply Chain Management Conference Driving Supply Chain Stability and Efficiency David Lewandowski Senior Supply Chain Planner - Amway GLOBAL SUPPLY SOLUTIONS 2014 Product Demand 1 Agenda

More information

Model, Analyze and Optimize the Supply Chain

Model, Analyze and Optimize the Supply Chain Model, Analyze and Optimize the Supply Chain Optimize networks Improve product flow Right-size inventory Simulate service Balance production Optimize routes The Leading Supply Chain Design and Analysis

More information

Best Practice Demand Planning Discussion Cathy Humphreys Business Development Manager UK

Best Practice Demand Planning Discussion Cathy Humphreys Business Development Manager UK Best Practice Demand Planning Discussion Cathy Humphreys Business Development Manager UK Best practice Demand Planning - Discussion Pressure to improve Demand Planning Implications of current economic

More information

SUPPLY CHAIN MODELING USING SIMULATION

SUPPLY CHAIN MODELING USING SIMULATION SUPPLY CHAIN MODELING USING SIMULATION 1 YOON CHANG AND 2 HARRIS MAKATSORIS 1 Institute for Manufacturing, University of Cambridge, Cambridge, CB2 1RX, UK 1 To whom correspondence should be addressed.

More information

NEWS IN SUPPLY CHAIN IFS APPLICATIONS 9 JAKOB BJÖRKLUND, HÅKAN ANDERSSON

NEWS IN SUPPLY CHAIN IFS APPLICATIONS 9 JAKOB BJÖRKLUND, HÅKAN ANDERSSON NEWS IN SUPPLY CHAIN IFS APPLICATIONS 9 JAKOB BJÖRKLUND, HÅKAN ANDERSSON 2 IFS APPLICATIONS 9 SUPPLY CHAIN 100% EMBEDDED CRM PROCUREMENT AND SRM STORES WMS WAREHOUSE WAREHOUSE MOBILITY RETURNS & MULTI-SITE

More information

Cost Justification of a Warehouse Management System: A Five Step Plan

Cost Justification of a Warehouse Management System: A Five Step Plan WHITE PAPER Cost Justification of a Warehouse Management System: A Five Step Plan Introduction Executive Summary Warehouse management systems (WMS) have become essential to the smooth and efficient operation

More information

Chapter 7. 7.1 Introduction. Distribution Strategies. Traditional Warehousing. 7.3. Intermediate Inventory Storage Point Strategies

Chapter 7. 7.1 Introduction. Distribution Strategies. Traditional Warehousing. 7.3. Intermediate Inventory Storage Point Strategies 7.1 Introduction McGraw-Hill/Irwin Chapter 7 Distribution Strategies Copyright 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Focus on the distribution function. Various possible distribution

More information

APPENDIX B. The Risk Pool Game B.1 INTRODUCTION

APPENDIX B. The Risk Pool Game B.1 INTRODUCTION APPENDIX B The Risk Pool Game B.1 INTRODUCTION One of the most important concepts in supply chain management is risk pooling. Recall that risk pooling involves the use of centralized inventory to take

More information

MODERN CHALLENGES OF INVENTORY PLANNING. Modern Challenges of Inventory Planning 1

MODERN CHALLENGES OF INVENTORY PLANNING. Modern Challenges of Inventory Planning 1 MODERN CHALLENGES OF INVENTORY PLANNING Modern Challenges of Inventory Planning 1 Modern Challenges of Inventory Planning By Jeremy Shapiro, President of Slim Technologies Inventory planning is a venerable

More information

Section D: Logistics. 2008 APICS All rights reserved. 2-141 Version 1.4 Draft 2

Section D: Logistics. 2008 APICS All rights reserved. 2-141 Version 1.4 Draft 2 This section is designed to Define logistics and explain its relationship to supply chain strategy Describe the interrelationship of the various logistics functions Define warehousing and sketch a brief

More information

ORACLE INVENTORY MANAGEMENT CLOUD

ORACLE INVENTORY MANAGEMENT CLOUD ORACLE INVENTORY MANAGEMENT CLOUD Inventory is a major asset for many organizations, and effectively managing inventory, including the related inventory movement transactions, can impact your bottom line.

More information

The Supply Chain in Reverse Component Remanufacturing at Rolls-Royce Corporation

The Supply Chain in Reverse Component Remanufacturing at Rolls-Royce Corporation The Supply Chain in Reverse Component Remanufacturing at Rolls-Royce Corporation Reverse and Closed Loop Supply Chain Management Rolls-Royce Global Repair Services: Americas James W. Tilton, CPIM Peter

More information

Cargo Flows & Hot Spots

Cargo Flows & Hot Spots Cargo Flows & Hot Spots Peter Colon Buck Consultants International German-Dutch Logistics Conference March 2015 Buck Consultants International P.O. Box 1456 6501 BL Nijmegen The Netherlands P: +31 24 379

More information

Operations Research in Supply Chain Optimization

Operations Research in Supply Chain Optimization Operations Research in Supply Chain Optimization M.G. Speranza University of Brescia, Italy Department of Management Science & Technology Athens University of Economics and Business November 12, 20 The

More information

Consumer Demand Driven Supply Chain

Consumer Demand Driven Supply Chain Consumer Demand Driven Supply Chain Analyst Field Trip Derrick Penick SVP Merchandising & Distribution Food Lion LLC Mark Doiron, EVP - Hannaford Portsmouth, NH December 3, 2008 1 Delhaize Group U.S. Supply

More information

Aspen Collaborative Demand Manager

Aspen Collaborative Demand Manager A world-class enterprise solution for forecasting market demand Aspen Collaborative Demand Manager combines historical and real-time data to generate the most accurate forecasts and manage these forecasts

More information

It is concerned with decisions relating to current assets and current liabilities

It is concerned with decisions relating to current assets and current liabilities It is concerned with decisions relating to current assets and current liabilities Best Buy Co, NA s largest consumer electronics retailer, has performed extremely well over the past decade. Its stock sold

More information

Supply Chain Performance: The Supplier s Role

Supply Chain Performance: The Supplier s Role Supply Chain Performance: The Supplier s Role March 2005 Industry Directions Inc. www.industrydirections.com Companies of all sizes are realizing that they no longer have complete control over their market

More information

Supply & Demand Management

Supply & Demand Management Supply & Demand Management Planning and Executing Across the Entire Supply Chain Strategic Planning Demand Management Replenishment/Order Optimization Collaboration/ Reporting & Analytics Network Optimization

More information

DROPCOM has an endless supply of products

DROPCOM has an endless supply of products INTRODUCTION TO BECOMING A DROPCOM MASTER DISTRIBUTOR DROPCOM has an endless supply of products being fed by Amazon, Groupon, Home Depot, and more We also have thousands of Authorized Resellers who are

More information

WHITE PAPER. Responsive Supply Chain. Abstract

WHITE PAPER. Responsive Supply Chain. Abstract WHITE PAPER Responsive Supply Chain Abstract Short product lifecycles, fickle consumers and dispersed supply chains characterize today s Retail, Apparel and Footwear environment. While companies have made

More information

Logistics & Supply Chain

Logistics & Supply Chain Logistics & 1 Logistics & Warehouse Plans and manages the storage and retrieval process. Manages all aspects of warehouse operations. Warehouse / Store Assistant Handles basic warehouse operations, including

More information

ISM 50 - Business Information Systems

ISM 50 - Business Information Systems ISM 50 - Business Information Systems Lecture 4 Instructor: John Musacchio UC Santa Cruz April 7, 2005 Announcements Forum working now Previous posts were not lost. Read Ch3.1 thru 3.3 and Frito Lay case

More information

Network & Inventory Optimization. JDA Software: Powering the Adaptive Supply Chain with Global Network and Inventory Performance Optimization

Network & Inventory Optimization. JDA Software: Powering the Adaptive Supply Chain with Global Network and Inventory Performance Optimization Network & Inventory JDA Software: Powering the Adaptive Supply Chain with Global Network and Inventory Performance Leverage strategic network and inventory policies to enhance service, revenue and asset

More information

Improving Profitability by an Integrated, Collaborative Approach to Supply Chain Optimisation and Management

Improving Profitability by an Integrated, Collaborative Approach to Supply Chain Optimisation and Management Improving Profitability by an Integrated, Collaborative Approach to Supply Chain Optimisation and Management David J. Adams, Mgr. Centre of Excellence, Advanced Planning and Scheduling C.E.E. Refining

More information

Introduction to Logistics & Supply Chain Management

Introduction to Logistics & Supply Chain Management CTL.SC1x -Supply Chain & Logistics Fundamentals Introduction to Logistics & Supply Chain Management MIT Center for Transportation & Logistics "Bananas". Licensed under Creative Commons Attribution-Share

More information

ORACLE FLOW MANUFACTURING

ORACLE FLOW MANUFACTURING ORACLE FLOW MANUFACTURING KEY FEATURES ORACLE FLOW MANUFACUTURING PROVIDES THE FOLLOWING CAPABILITIES CRITICAL FOR A LEAN, MIXED MODEL MANUFACTURER: Value stream mapping to identify opportunities for improvement

More information

www.flowcastingbook.com Page 1

www.flowcastingbook.com Page 1 The Summary in Brief The retail store has been disconnected from planning the supply chain, even though the majority of planning problems can only be addressed at store level. For example, retail out-of-stocks

More information

BEST PRACTICES IN DEMAND AND INVENTORY PLANNING

BEST PRACTICES IN DEMAND AND INVENTORY PLANNING WHITEPAPER BEST PRACTICES IN DEMAND AND INVENTORY PLANNING for Food & Beverage Companies WHITEPAPER BEST PRACTICES IN DEMAND AND INVENTORY PLANNING 2 ABOUT In support of its present and future customers,

More information

When Worlds Collide: Next Generation ERP

When Worlds Collide: Next Generation ERP ADVANCED MANUFACTURING RESEARCH When Worlds Collide: Next Generation ERP Bruce Richardson Vice President, Research Strategy When Worlds Collide The View From The Marketplace The Next Generation ERP Market

More information

Operations Management. 3.3 Justify the need for Operational Planning and Control in a selected Production Process

Operations Management. 3.3 Justify the need for Operational Planning and Control in a selected Production Process Operations Management 3.3 Justify the need for Operational Planning and Control in a selected Production Process Key Topics LO3 Understand how to organise a typical production process 3.3 justify the need

More information

LOGISTICS & SUPPLY CHAIN MANAGEMENT

LOGISTICS & SUPPLY CHAIN MANAGEMENT LOGISTICS & SUPPLY CHAIN MANAGEMENT Section 1 Understanding the Supply Chain and its logistics activities C O R R A D O C E R R U T I What is Logistics? Logistics takes care of the activities and the decisions

More information

Inventory Management: Fundamental Concepts & EOQ. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006

Inventory Management: Fundamental Concepts & EOQ. Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Inventory Management: Fundamental Concepts & EOQ Chris Caplice ESD.260/15.770/1.260 Logistics Systems Oct 2006 Agenda Wrap up of Demand Forecasting Fundamentals of Inventory Management Economic Order Quantity

More information

MWPVL. Leadership in Supply Chain and Logistics Consulting. Options to Improve Productivity at a Parts Distribution Center

MWPVL. Leadership in Supply Chain and Logistics Consulting. Options to Improve Productivity at a Parts Distribution Center Leadership in Supply Chain and Logistics Consulting Options to Improve Productivity at a Parts Distribution Center Marc Wulfraat President (514) 482-3572 x 100 Marc.wulfraat@.com All Rights Reserved to

More information

Job Manager for Metal Fabrication

Job Manager for Metal Fabrication Job Manager for Metal Fabrication What makes Metal Fabrication unique? First, most metal shops are building to unique specifications. The Jobs are service type jobs, not production type jobs. Mass Production

More information

Module 3 Part Attribute Confirmation

Module 3 Part Attribute Confirmation Welcome to Demand Driven Technologies, the home of Replenishment plus and module 3 of our education tutorials. In Module 2 you learned how to understand and confirm buffer profiles. The individual part

More information

Working Capital and the Financing Decision C H A P T E R S I X

Working Capital and the Financing Decision C H A P T E R S I X Working Capital and the Financing Decision C H A P T E R S I X Limited 2000 Figure 6-1a The nature of asset growth A. Stage I: Limited or no Growth PPT 6-1 Dollars Temporary current assets Capital assets

More information

3.7 Logistics Execution

3.7 Logistics Execution 106 3 SAP EP Operations 3.7 Logistics Execution The Logistics Execution (LE) component controls and organizes both the movement of material within the enterprise (warehouse management) and also transportation

More information

BUILDING THE SMART SUPPLY CHAIN

BUILDING THE SMART SUPPLY CHAIN BUILDING THE SMART SUPPLY CHAIN James Cooke +1-617-720-2000 jcooke@nucleusresearch.com About Nucleus Research A technology research firm specializing in valuebased research. >Founded in 2000, based in

More information

Go Beyond Simple Productivity improvement with Optimized Production Scheduling

Go Beyond Simple Productivity improvement with Optimized Production Scheduling Go Beyond Simple Productivity improvement with Optimized Production Scheduling Michael Evans Marketing Manager The Preactor Group Denis Ouellet Director West Monroe Partners Chriss Poliquin Senior Architect

More information

RapidResponse Training Catalog

RapidResponse Training Catalog RapidResponse Training Catalog Contents About RapidResponse Training... 4 RapidResponse Roles... 4 Consumers... 5 Contributors... 6 Contributors + RapidResponse Applications... 6 Authors... 8 Basic Authors...

More information

Achieving World-class Fabless Planning

Achieving World-class Fabless Planning Whitepaper Series Achieving World-class Fabless Planning Reduce lengthy cycle times and respond to change quickly Introduction The Fabless Semiconductor industry achieves high growth rates and superior

More information

Standard Work for Optimal Inventory Management

Standard Work for Optimal Inventory Management Standard Work for Optimal Inventory Management Putting practical science to work Presenter Edward S. Pound COO, Factory Physics Inc. 27 years in manufacturing JVC manufacturing engineering Honeywell (AlliedSignal)

More information