Using Production and Sourcing Policies

The Production Policies, Site Sourcing Policies and Customer Sourcing Policies tables have a different role for Network Optimization, Safety Stock Optimization, and Simulation. The fields used by the different design engines are Production Policies Fixed Order Time, Unit Production Time, and Sourcing Policies Fixed Order Time, Unit Sourcing Time, and Source Lead Time:

Network Optimization Production and Sourcing Policies

Network Optimization uses Process Step level times when determining work-center and work-resource capacity consumption (when consumption is time-based).

Production policy level time (Fixed Order Time) is only used in multi-period models when the 'Allow Cross Period Production' option is selected. This is used to determine when to start production so that demand is satisfied on time.

Safety Stock Optimization Production and Sourcing Policies

Safety Stock Optimization uses the Source Lead Time, which is additional to the Fixed Order Time for Production Policies. Source Lead Time plus Fixed Order Time is the time taken from the receipt of the production order to the produced product.

In addition, Safety Stock Optimization uses the Transport Time on the Transportation Policies when determining the overall lead time for the product.

Simulation Production and Sourcing Policies

Simulation uses the Production Policies Fixed Order Time, the Unit Production Time, and the Site/Customer Sourcing Policies Fixed Order Time, and the Unit Sourcing Time. These elements are used in the discrete event planning system when determining how long it takes to either produce or source a new requirement. The time calculated is fixed time + (unit time * number of units).