Supply Planning Simulation: Want to see the impact on your supply planning process?
With Orchestr8, you have the ability to run a “what-if“ analysis that leads to the optimum or “best” setup of the supply chain. Supply Planning Simulation helps you better understand how various components interact with each other and how they affect the overall supply chain performance.
Orchestr8 empowers businesses to do so by means of its inventory planning simulation module.
The module can cope with historical what-if simulations and with forward-looking supply planning simulations to show the potential impact of the current forecast given existing parameters.
Inventory capacity planning reports are linked to the forward simulation functionality to allow resources and physical supply chain elements to be planned effectively. Results are generated in terms of likely stock profiles, the number of transactions (make events, sales, orders, and receipts), space requirements, and resources required in man-hours to support the model.
How does it work? We provide five types of simulation capabilities:
1. Part Simulation
2. Historical Simulation on a group of parts, BOM included
3. Forward Simulation on a group of parts, BOM included
4. Forward Simulation Capacity
5. Historical Simulation Capacity
The historical simulation is a program that lets the user run a simulation of supply chain performance for a group of parts over a defined period of history.
The program starts by calculating the inventory targets that currently apply using the current inventory rules for the parts in the group. Having obtained the inventory targets the program then re-runs history over the period defined in the start and end dates for the simulation range.
The program uses the historical demand usage of each part over this period to simulate what new orders would be raised each day applying the appropriate inventory rule and target for the parts. Taking the expected lead time for delivery we can then show when the inventory would be received into stock and the resulting on-hand inventory level.
The simulation run provides an on-hand inventory level profile over the simulation date range as well as the number and value of orders raised and consumed, that can be used for capacity analysis purposes.
The historical simulation collects the results for each individual part and presents the results summarised by the supplier, part type code, or part number.
The Historical simulation has additional functionality that allows it to blow through a manufacturing BOM, to generate simulation results for multiple levels in the BOM structure, e.g. to simulate the performance and requirements for inbound inventory holding which is used to supply a factory environment and finished goods inventory position.
The Historical simulation page is highly functional and interactive, allowing the user to change parameters related to the part and rule information and re-run simulations to quickly compare results without affecting the current live part master data. These parameters can be easily reset to their original value.
Historical simulation is typically used to validate the selection of inventory rules created by using the VVA analysis.
Build a Supply Planning Business Case
Quickly build a business case for end-to-end supply planning and execution. See for yourself with zero financial commitment. Dramatically transform your inventory planning function.
Get in touch. We’ll run a simulation on your historical data to compare your actual to the performance improvement you could have achieved with O8. The simulation is no cost, comprehensive, and fast. All it takes are a couple of conversations and an extract of your last six months of data (nothing proprietary).
In a couple of weeks, you’ll see the results. Then if you choose to deploy, we guarantee you’ll achieve an improvement revealed in the simulation, or you pay NOTHING for our software until you do.
Want to learn more? Get in touch today.