Inventory Simulation Options

Run Multi-Echelon Inventory Simulation

When the problem type is Inventory Simulation, if this switch is on, multi-echelon inventory simulation is run. When the switch is off, regular inventory simulation is run. To set this value in a scenario, select the “Run Multi-Echelon Inventory Simulation” field in the Inventory Optimization Options table and select "Yes" as the value.

Warm Up Period in Months

For Simulation, you use a warm up period in which Simulation starts running, but the actual statistics are accumulated at the end of the warm up period. This allows the model to reach a steady state. For example, the work center utilized time starts at the end of the warm up period. To set this value in a scenario, select the “Warm Up Period in Months” field in the Inventory Optimization Options table and enter the number of months as the value.

Simulation Length in Months

Use the simulation length to determine how long the Inventory Simulation runs. The recommended approach for running Inventory Simulation is to use a longer simulation run with a generated demand stream. The longer simulation period helps improve the accuracy of the estimated results from simulation. To set this value in a scenario, select the “Simulation Length in Months” field in the Inventory Optimization Options table and enter the number of months as the value.

Run Simulation Using Historical Demand

Select this option to use historical demand when running Inventory Simulation. Safety Stock Optimization must first be run with the Populate Site Demand Series check box selected on the Demand Analysis tab in Inventory Optimization Options. When this option is checked, Safety Stock Optimization populates the Site Demand Series table for all sites: both customer-facing and non customer-facing.

If you want to populate the Site Demand Series, your propagation method must be “Demand Series”. If this option is set to “Formula”, the Site Demand Series table will not be populated.

When you have Run Simulation Using Historical Demand selected, Simulation uses an even multiple of the demand that was supplied as part of the Safety Stock Optimization. The Simulation Length in Months option is used, but it is rounded up to the next higher multiple of the original model horizon if necessary. In this way, the simulation will not be "skewed" by a strange distribution of demand. The Warm Up Period in Months option is used as specified in the Inventory Simulation options. To set this value in a scenario, select the “Run Simulation Using Historical Demand” field in the Inventory Optimization Options table and select "Yes" as the value.

Output Transaction Data

Order Transactions – When this option is selected, results are populated in the Order Transactions Simulation Output table. To set this option in a scenario item, select the “Order Transactions” field in the Inventory Optimization Options table and select "Yes" as the value.

Output Time Series Statistics

Inventory – When this option is selected, results are populated for the Inventory Units column in the Inventory Detail output table. To set this option in a scenario item, select the “Inventory” field in the Inventory Optimization Options table and select "Yes" as the value.