Your software does not ‘automatically’ tell you that forecast of product A needs to be higher than forecast of product C by at least 30% at any given point in time. Data is speaking to you, but you don’t ‘notice’ it. Let our macros detect it for you and flag that you need to adjust your forecast.
There can be 100’s of ways to categorize your products and customers for better prediction and service level parameters set up incl. lot sizes, reorder points, target stock levels and minimum order quantities
You do not ‘Do’ Supply Chain Planning to penalize bad planning (and planners). You do it to (and you should) to be responsive to abrupt changes in demand and supply situation. But THEY (the big consulting firms) haven’t really evolved from the MRPII framework.
The ‘Advanced Planning and Scheduling Solutions, the precursor to ‘Integrated Business Planning continues to be implemented sans the ‘Science’ behind the ‘dynamics of material flow within the supply network. There is no Intelligence in ‘Time Series’ and ‘Regression’ Models. The ‘Rough Cut Capacity Plan’ works only on paper. If 10 units take 10 minutes to produce, 100 units won’t take 100. It may take more than 150. Inventory Optimization continues to be maverick formulae for safety stock and lot size reduction. No. You can’t reduce Lot Sizes. Its wishful thinking. Try advising that to a company with 2000 liters of tank to run a production batch of 100 liters!
Intelligent Supply Chain Planning need deeper understanding on your Business Model, Your constraints, your competition, your products, your installed and subcontracted capacity, your manufacturing, distribution and fulfillement strtagey, your storage constraints. your handling constraints. your product expiration risks. More importantly the expectations of the customers you serve, notwithstanding your ability to serve or (in)ability ‘manage’ your constraints. Because constraints will always remain. In the long run everyone is as ‘efficient’ wrt installed capacity of their supply chains but its instantenous decisions that matter in a responsive supply chain.
Capacity is short RIGHT NOW. Not over the next week.
What scheduling algorithm should I use to reschedule the order in a such a way that I do not delay the delivery!