OMSAN LOJİSTİK. Information Systems to Inventory Management Inventory Planning and Management...
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Transcript of OMSAN LOJİSTİK. Information Systems to Inventory Management Inventory Planning and Management...
OMSAN LOJİSTİK
Information Systems to Inventory Management
Inventory Planning and Management
Latin America Logistics Center
Logistics Management Series -
Agenda
• Planning vs. Control
• Forecasting
• Fill Rate Planning
• Replenishment Planning
• Optimisation
• Supply Chain Management
Planning vs. Control
Planning
Man
ag
em
en
t
ExecutionMon
itori
ng
Inventory Control
• Fundamentals for Inventory Planning
• How Many do I have in Stock?– By Item– By Position
• Accuracy is Critical– Key Performance Indicators – % Accuracy by % de Positions
Demand Forecast
• Critical for Inventory Planning
• Question: How Many will we sale?– By Item– By Period
• Planning Horizon Coverage
• Optimal Review Intervals
• Key Performance Indicators in Demand Forecast
Forecast
A Forecast, a range & a probability
0
50
100
150
200
250
300
1 2 3 4 5 6 7 8 9 10period
Un
its
Actual
Forecast
Fill Rate Planning
• How Many in Stock to achieve the target by fill rate & ROI
• By Item, by Position, by Period
• Stock Cycles
• Safety Stock
• Stocks Building
Inventory Management in Time
0
100
200
300
400
500
600
700
1 2 3 4 5 6 7 8period
Un
its Cycle
Build
SS
Forecast
Stock of the Replenishment Cycle
• Is the Stock that results from the difference between the replenishment quantities and the quantities of the demand orders
0
50
100
150
200
250
1 2 3 4 5 6 7 8
Cycle
SS
Safety Stock
• Planned Inventory to fulfil demand overloads during lead time
02040
6080
100120
140160
1 2 3 4 5 6 7 8
SS
Actual
Plan
Building Inventory
• Planned Inventory to accumulate stock before the demand season
• Generally for periods of time in which demand exceeds production capacity
0
100
200
300
400
500
600
1 2 3 4 5 6 7 8
Inventory
Forecast
Replenishment Planning
• When does Inventory should be replenished?
• How many units?
• From which location?
• Planning Scope– Reorder Points– Distribution Requirements Planning (DRP)– Constrained Optimisation
Replenishment Planning
CustomerDC
DC
CustomerDC
Plant Plant
DC
CustomerDC
Constrained Optimisation
• Develop a plan that recognises the business constraints
• Capacity and Sequence of the Production Lines• Vehicle Capacity and Transportation Costs• Warehousing Capacity• Inventory Carrying Cost• Customer Prioritisation
• Business Performance Optimisation– Cost Minimisation & Revenues Maximisation
Constrained Optimisation
• Simultaneously consider all SKUs that share Constraints– Within the Business– Between Business
• Requires Advanced Mathematical Techniques of Optimisation– Linear Programming– Artificial Intelligence Techniques
Supply Management
• Inventory Management and Replenishment through Supply Chain Business
• More Acronyms...– QR - Quick Response – ECR - Efficient Consumer Response– VMI - Vendor Managed Inventory– CPFR - Collaborative Planning, Forecasting &
Replenishment
QR, ECR, VMI
• The Supplier is Responsible for Inventory Planning and Replenishment in the POS
• Usually occurs between big suppliers and customers
• Requires EDI or Electronic Data
• Batch Oriented , is not interactive
Local User
Internet/ExtranetCustomer,Supplier,Remote User
Forecast &Replenishment
Planning
Reviews and Confirmation
Internet Collaborative Planning
Case Study - Heineken USA
• HUSA is the only importer of Heineken to USA
• HUSA sales 150 SKUs to 450 distributors
• No Production Facilities in USA – only Marketing, Sales and Distribution
Product and Information Flow
HUSA
BreweryDistributors
Orders
Orders
Product
Objectives
• Reduce order lead time
• Provide to the Brewery better product forecast
• Improve Service Levels to and from distributors
• Improve flow of information of marketing with distributors
HOPS Characteristics
• Gathers Sales and Stocks Data
• Delivers to the Distributor a Forecast for Review and Approval
• Delivers to the Distributor an Inventory plan. Allows reviews of parameters and rules
• Delivers to the Distributor a suggested order
– Based on forecast, targets & constraints
• Real Time System
Information Flow
HUSA
BreweryDistributors
Confirmed Orders,Sales & Forecasts, Inventory Position
Distributors Orders & Aggregate Forecast
Suggested Orders,Inventory, Forecasts
Heineken Operational Planning System
Outcomes
• Better achievement of sales targets
• Dramatically improved forecasts sent to the Brewery
• Sales person dismissal from taking orders
• Four weeks reduction in customer order cycles
• Sales Increase!!!
Software for Inventory Management
• Manugistics
• Numetrix
• i2
• FYI Planner
• Lucas-Baer
• LPA
• Logility
• Information Concepts Inc.