Inventory Policies Multi-Period

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Inventory Policies Multi-Period

Internal Table Name: InventoryPolicies_MultiPeriod

Period Name

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: PeriodName

Type: Short Text (50)

Select the Time Period in which the Inventory Policy data changes.

Site

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: SiteName

Type: Short Text (100)

Select the Site for which an Inventory Policy is being changed for this time period.

Product

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: ProductName

Type: Short Text (100)

Select the product for which an Inventory Policy is being changed during this time period.

Unit Inbound Cost

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: InboundCost

Type: Short Text (255)

Enter the new activity cost of handling and moving one unit of this product from the receiving dock into inventory for this time period. Inbound and outbound costs include such costs as paper tracking procedures, handling equipment, and personnel.

Inbound Cost does not include Transportation costs.

Unit Outbound Cost

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: OutboundCost

Type: Short Text (255)

Enter the new activity cost of removing one unit of this product from inventory to the shipping dock during this time period. Inbound and outbound costs include such costs as paper tracking procedures, handling equipment, and personnel.

Outbound Cost does not include Transportation costs.

Inbound Capacity

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: InboundCapacity

Type: Short Text (100)

Enter the maximum amount of product this site is capable of accepting during this period. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used. To define a capacity with no maximum, leave this field blank.

Outbound Capacity

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: OutboundCapacity

Type: Short Text (100)

Enter the maximum amount of product this site is capable of shipping during this period. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used. You can also leave it blank to define a capacity with no maximum.

Inv Carrying Cost %

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: InvCarryingCostPercentage

Type: Number (Double)

Specifies the cost percentage for holding inventory of specified product at this site during this period in the optimization run. This percentage and the Product Value are used to calculate inventory holding costs. For example, if the inventory carrying cost percentage is 10%, enter "10" in this field. If this value is not specified, the Inv Carrying Cost % in the Inventory Policies is used if populated; otherwise, the Inv Carrying Cost % in Model Settings is used.

Inventory Turns

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: InventoryTurns

Type: Short Text (50)

Specifies a piecewise linear function from which the average inventory can be calculated during optimization.

We define the following relationship between Average Inventory and Throughput:

Average Inventory = m x Throughput

Where m is the inverse of the inventory turns value.

Unhealthy Turn Percent

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: UnhealthyTurnPercent

Type: Number (Double)

Enter the percent of additional inventory that is holding space in the model beyond turn-based inventory. The value is expressed as a percentage of the turns.

Minimum Inventory

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: MinInvQty

Type: Short Text (100)

Specifies the minimum amount of specified product that this site is allowed to stock during this period. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Maximum Inventory

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: MaxInvQty

Type: Short Text (100)

Specifies the maximum amount of specified product that this site can stock during this period. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Scheduled Receipt

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: ScheduledReceipt

Type: Short Text (100)

Enter the amount that this site is to receive during this period outside of the other logic set up in the model. Enter a value, then optionally select a quantity, weight or volume unit of measure. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Safety Stock

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: SafetyStock

Type: Short Text (100)

Specifies the quantity or Days of Supply to be held in inventory in the Network optimization. Enter a value, then optionally select a quantity, weight or volume unit of measure, or select DOS to specify Days of Supply. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used. This field is an input for Network Optimization. To calculate this value, use Safety Stock Optimization.

Unit Disposal Cost

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: DisposalCost

Type: Short Text (100)

Enter the disposal cost that is incurred when the shelf life expires for this product at this site in this period. In multi-period models, if a Unit Disposal Cost value is not defined for the first period in the Inventory Policies Multi-Time Period table, Network Optimization uses the Unit Disposal Cost in the Inventory Policies table.

Network Optimization supports disposal cost both for products that expire based on their shelf life and those by-products that are trash (not expired)

Expired Products – If the product reaches its shelf life before the model ends, it is an expired product. You can define a disposal cost that is incurred when the shelf life of a product expires within the model horizon. Network Optimization determines whether it is cheaper to incur the disposal cost and get rid of the product when expired, or convert it into another product through relevant Bills of Material before the product expires.

The Unit Disposal Cost field in the Inventory Policies and Inventory Policies Multi-Period tables enable you to set a disposal cost per product per site for each time period. You must define Inventory Policies for products that can expire, even if you are not applying a Unit Disposal Cost.

For expired products, the cost is reported in the Flow Transportation Cost field on the Customer Flows Optimization Output table, for a flow with a Customer named "Trash". The Mode is “EXPIRED PRODUCT”.

The Unit Disposal Cost fields for product expiration are available as target fields when creating Input Pipes.

Trashed Products – A by-product is considered trash if it has not reached its expiration date (end of shelf life) by the end of the model and if there are no Inventory Policies defined for the product. If there are Inventory Policies defined, it is assumed that the by-product should be held in inventory, rather than trashed. In this case, an inventory holding cost may be incurred.

If a by-product is to be trashed (that is, no Inventory Policies have been defined), you can define a disposal cost to be incurred for an unexpired by-product, in other words the cost to dispose of by-products created as part of your Bills Of Material. This is referred to as a “trashing cost” and applies to unused, unexpired by-product. You specify this using the “Disposal cost per unit of by-product” on the Modeling Options tab of Optimization Options.

The disposal cost for trashed products is reported in the Flow Transportation Cost field on the Customer Flows Optimization Output table, for a flow with a Customer named "Trash". The Mode is “UNUSED PRODUCT”.

Unit Storage Cost

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: InventoryCostOther

Type: Number (Double)

Enter the cost per unit of inventory per period.

Unit Inventory Value

Technology: NO IO

Table: InventoryPolicies_MultiPeriod

Internal Name: ProductInventoryValue

Type: Number (Double)

Enter a monetary value for each unit of the product at the site in this period. The Unit Inventory Value field is used to calculate the inventory investment and inventory holding costs. This enables you to vary the product value at a specific site by time period. It is incorporated in the following formula:

Inventory holding cost = Inventory Quantity * Unit Inventory Value * Holding Cost Percentage * Length of Time in Inventory

The Unit Inventory Value in the Inventory Policies Multi-Period table overrides the Product Value in the Products table for Network Optimization and Inventory Optimization. In Simulation, the Product Value in the Products table is always used.

Unit Taxable Value

Technology: NO

Table: InventoryPolicies_MultiPeriod

Internal Name: ProductTaxableValue

Type: Number (Double)

When you define records in support of taxes and duties, the Unit Taxable Value is used to determine the product value for taxation purposes in some cases. You can set up Tax And Duty Regions, each of which has a Source and Destination. When the locations used for the Source and Destination are sites (not customers), the Unit Taxable Value from the Inventory Policies Multi-Period table is used to determine the product value. This value is overridden by values populated in the Taxable Value Overrides table. If this value is not populated and Product Taxable Value is not populated in Inventory Policies and you have no Taxable Value Overrides defined, the Unit Value from the Products table is used.

Minimum Safety Stock

Technology: IO

Table: InventoryPolicies_MultiPeriod

Internal Name: MinSafetyStockQty

Type: Short Text (100)

Specifies the minimum safety stock that must be held for this product-location combination. Enter a value, then optionally select a quantity, weight or volume unit of measure, or select DOS to specify Days of Supply. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Maximum Safety Stock

Technology: IO

Table: InventoryPolicies_MultiPeriod

Internal Name: MaxSafetyStockQty

Type: Short Text (100)

Specifies the maximum safety stock that can be held for this product-location combination. Enter a value, then optionally select a quantity, weight or volume unit of measure, or select DOS to specify Days of Supply. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Minimum Service Time

Technology: IO

Table: InventoryPolicies_MultiPeriod

Internal Name: MinServiceTime

Type: Short Text (50)

Specifies the minimum service time that is quoted by the Site to its downstream sites. Enter a value, then optionally select a time unit of measure. If you do not select a unit of measure, the default Time Unit Of Measure from Model Settings is used.

Maximum Service Time

Technology: IO

Table: InventoryPolicies_MultiPeriod

Internal Name: MaxServiceTime

Type: Short Text (50)

Specifies the maximum service time that is quoted by the Site to its downstream sites. Enter a value, then optionally select a time unit of measure. If you do not select a unit of measure, the default Time Unit Of Measure from Model Settings is used.

Reorder Point

Technology: S

Table: InventoryPolicies_MultiPeriod

Internal Name: ReorderPoint

Type: Short Text (100)

Specifies the inventory level at which a request for restocking (additional inventory provided from a Sourcing Policy) is submitted. Enter a value, then optionally select a quantity, weight or volume unit of measure, or select DOS to specify Days of Supply. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Reorder/Order Up To Qty

Technology: S

Table: InventoryPolicies_MultiPeriod

Internal Name: ReorderQty

Type: Short Text (100)

Specifies the amount of product requested at the reorder point to refill inventory. Enter a value, then optionally select a quantity, weight or volume unit of measure, or select DOS to specify Days of Supply. If you do not select a unit of measure, the default Quantity Unit Of Measure from Model Settings is used.

Service Requirement

Technology: IO

Table: InventoryPolicies_MultiPeriod

Internal Name: ServiceRequirement

Type: Number (Double)

Specifies the required service level of the product for customer-facing sites. The number must be input as a fraction - that is, 95% would be input as .95, not 95 in the table. A Service Requirement value of .50 ensures that no safety stock is held (that is, if the service definition is Type 1). If no service requirements are specified at any site, the service requirement will default to 95%. If Service Requirements are not specified upstream from a site where a Service Requirement is specified, this requirement is considered for the service level at the upstream sites.

Notes

Technology: NO IO S

Table: InventoryPolicies_MultiPeriod

Internal Name: InventoryPolicyPeriodNotes

Type: Memo

Enter optional descriptive notes about the inventory policy.

Last modified: Wednesday May 15, 2024

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