Integrated Scheduling

Motivation

• Distribution is handled as an afterthought or contracted out
• Little or no coordination between transfers/delivery and production planning
• Cost of delivery (transport, administration, low asset utilization) can be as much as 20 to 40% of the delivered cost.

Basic Process

Single Unified Logistics Model

Plan Requirements

DRP

• Run DRP in weekly, monthly or one demand at a time.
• Selectively create transfers, production, or procurements.

Inventory Search

• Search for inventory at locations based on the shortest transit time.
• Search for alternate products to satisfy requirements.
• Search for inventory based on routing cost and restrictions.
• Identify production based on variable cost + delivery cost.

Logic Overview

Plan Requirements Summary

DRP

1. Make a selection of items and locations

• Selection can optionally include all components and/or all products made from the items in the selection
• Select a beginning and ending date. The date range is used to limit the item location combinations that go negative in terms of inventory position within that time range.
• Select one or more demand types. Demand types include forecast, orders, confirmed orders etc. This allows the user to prioritize the DRP based on types of demand.

2. Safety stock quantities can be enforced. In addition control is provided for maximum accepted lateness.

3. Run DRP in weekly, monthly or one demand at a time

• In bucket mode, the inventory position is checked at the end of each bucket and corrective action is taken
• When running one demand at a time, each demand infeasibility is corrected either by transfers, production, or procurements. Required components are recursively examined and their inventory is corrected also.

4. Selectively create transfers, production, or procurements.

• User controls the actions allowed to correct inventory imbalances. The actions include
• Create transfers (based on allowed routes). If necessary, multiple transfers are created automatically. For example if an item needs to go from location A to C, but the only routes available are from A to B and B to C, two transfers will be created: one from A to B and another from B to C.
• Transfer paths are calculated based on Dijkstra’s shortest path algorithm.
• Replenishment Lot quantities can be enforced.
• Replenishments can be restricted to entire amount needed.
• Create production. If a production is created at a location, the associated transfer is also created. Locations that are looked at can be limited by valid routes. Manufacturing lot sizes are enforced
• Procurements are made only for products that cannot be manufactured. That is, the item has no appropriate manufacturing method

5. Optionally, alternate (substitute) products can be considered as candidates.

6. Full Undo and Redo capability. The DRP action can be reversed completely, or individual replenishments can be removed

Manage Transfers

Transfers

• Coordinate existing transfers with available inventory
• Add, delete, modify, merge transfers.
• Re-route transfers.

Vehicles

• Assign transfers to vehicles
• Combine and consolidate transfers based on vehicle capability (truck volume, barge volume etc.)
• Identify the impact of modifying transfers