Supply Chain Logistics Management

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Presentation transcript:

Supply Chain Logistics Management Chapter 9: Advanced Planning and Scheduling

APS Overview X X X Period 3 Period 2 Plants Period 1 DCs Customers Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Sample APS Planning Situation Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

APS System Modules ERP/Legacy System Requirements Optimization Demand Management ERP/Legacy System Resource Allocation Resource Management Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Demand Management Forecast data maintenance Marketing data entry Sales projections Promotions Customer information Competitive information Responsibility Forecast development Qualitative Quantitative Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

CPFR in Retail IT Environment Trading Partner Collaborate CRM APS ERP Promotions Forecasts Item Catalog Orders CPFR Solution Supplier Generate Demand Determine Rqmts Make to Internet EDI Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Profile Management Mix projection Bottom-up or top-down rationalization Price application Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Resource Management Distribution requirements planning Capacity planning Materials planning Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Available to Promise (ATP) Inventory assignment Commit production, Work-in-process (WIP) or replenishment Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

APS Examples Demand management Factory planning Transportation planning Integrated resource planning Supply chain design Pricing Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

APS Characteristics Driven by forecast and order requirements Constrained resource planning Integrated supply chain decision making Time phased Requires high data integrity and accuracy Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

APS Key Features Constraint management Concurrent planning Synchronized planning Modeling Optimization Simulation Available-to-promise capability Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Ft = (Bt x St x T x Ct x Pt) + I Forecast Model Ft = (Bt x St x T x Ct x Pt) + I Where: Ft = Forecast quantity for period t; Bt = Base level demand for period t; St = Seasonality factor for period t; T = Trend component – index reflecting increase or decrease per time period; Ct = Cyclical factor for period t; Pt = Promotional factor for period t; I = Irregular or random quantity. Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Top-down Forecast Plant DC Aggregate Forecast 10,000 units Field DC 1 Historical Split 10% 40% 30% 20% Field DC 1 Forecast 4,000 units Field DC 2 Forecast 3,000 units Field DC 3 Forecast 2,000 units Field DC 4 Forecast 1,000 units Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Forecast Management Process Forecast Database Forecast Process Forecast Users Orders History Tactics Forecast Administration Finance Marketing Sales Production Logistics Forecast Technique Forecast Support System Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.

Comparative Forecast Errors 100 60 40 20 80 National SKU-Location Brand Forecast Level Percent Error High Avg Low Supply Chain Logistics Management, First Edition , Bowersox, Closs, and Cooper Copyright© 2002 by The McGraw-Hill Companies, Inc. All rights reserved.