Inventory Optimization

Demand processing

Demand Sampling is now embedded within Demand Analysis.

If you want all demands to be considered as Normal distribution, use the Create Advanced IO Parameter Table Model Transformation to create the Config_IO user defined table. Select the option to reload the model. You can then include the “NormalDistributionOnly” parameter in the Config_IO user defined table and set the ParameterValue to 1.

Error reporting

Warning and error messages are reported in the Safety Stock Optimization Error Log output table. When you have Site-Product combinations with extremely slow or small demand, this is ignored and reported as a warning, allowing for more feasible solutions.

Site demand series

Use the Populate Site Demand Series option on the Demand Analysis tab in Inventory Optimization Options to populate the Site Demand Series table. You must use Demand Series as the method for Demand Analysis in conjunction with this option.

New features

• Auto Run Infeasibility Diagnosis – When running Safety Stock Optimization, if your model has infeasibilities, these are reported in the Safety Stock Optimization Error Log.
• Inventory Policy Override (Safety Stock Optimization: Advanced tab) – You can select an inventory policy to act as an override to recommended policies.
• Single Solution Multi-Period (Safety Stock Optimization: Advanced tab)– In a multi-period model, each period is assumed to be independent. This can produce different safety stock placement decisions for each period. With "Single Solution Multi-Period", all periods are considered simultaneously to determine one safety stock placement strategy.
• Calculate Upstream Service Failure (Safety Stock Optimization: Advanced tab)– You can define lower service levels for upstream sites (such as manufacturing plants) in comparison to downstream sites (such as distribution centers). “Calculate Upstream Service Failure” calculates the amount of additional safety stock downstream needed due to a lower upstream service defined and reports it in the USF Safety Stock column in the Inventory Policy Summary table.
• Post Process Random Lead Time (Safety Stock Optimization: Advanced tab) – In Safety Stock Optimization, the lead time variability (including production time, transport time and sourcing lead time) is assumed to be evenly distributed across the network. If you select “Post Process Random Lead Time”, after the optimization on safety stock placement is done, the safety stock is recalculated based on the coverage and the adjusted lead time values associated with each site.
• Forecast Error and Bias (Safety Stock Optimization: Advanced tab) – Options are available to control Forecast Time Bucket (for forecast statistics), Forecast Error Type, Forecast Bias Metric and Forecast Bias Method.
• Forecast Input – You can input forecast data using one of two methods: 1) Customer and Site Historical Forecast tables, and 2) User Defined Customer and Site Forecast Profile tables.
• Product Life – You can provide the "Start Date" and "End Date" of products in the Products table. If start and end dates are provided, then Safety Stock Optimization estimates demand parameters within the product life horizon. Otherwise, the model horizon is used.