1. Guru Simulation Training

2. Agenda Introduction Data Model 1st Pass: Basic Structure
Data Model 2nd Pass: Policy Detail
Data Model 3rd Pass: Implementation

3. Agenda Introduction Data Model 1st Pass: Basic Structure
What are we going to Cover?
Data Model 1st Pass: Basic Structure
Data Model 2nd Pass: Policy Detail
Data Model 3rd Pass: Implementation

4. Introduction to the Data Model
Data Model 1st Pass: High Level Structure
30,000 Ft view
Basic structural pieces
Data Model 2nd Pass: Policy Detail
15,000 Ft view
Integrate details about inventory, sourcing and transportation policies
Data Model 3rd Pass: Implementation
1000 Ft view
How are the Guru Tables used to create a model

5. Agenda Introduction Data Model 1st Pass: Basic Structure
Basic Structural Elements
Walkthrough of Events
Data Model 2nd Pass: Policy Detail
Data Model 3rd Pass: Implementation

6. Data Model 1st Pass: Basic Structure
Products
Required Elements
Name
Value
Price
Weight
Cube
Product

7. Data Model 1st Pass: Basic Structure
Sites
Required Elements
Name – Unique
Location – Lat/Long or Street Address
Type – Customer (Demand Point) or Facility (Hold Inventory) CZ DC
MFG

8. Data Model 1st Pass: Basic Structure
Demand
Required Elements
Site
Product
Time
Quantity CZ
Demand

9. Data Model 1st Pass: Basic Structure
Single Source
Sourcing Policies
Determines where the order
will be sourced from
Types of Policies
Single Source
Multiple Sources
Make
Required Elements
Source
Destination
Product
Policy CZ DC
Multiple Sources
DC1 CZ
DC2
Make
MFG

10. Data Model 1st Pass: Basic Structure
Inventory Policies
Specifies when and how to
replenish inventory
Required Elements
Site
Product
Policy DC IP

11. Data Model 1st Pass: Basic Structure
Transportation Policies
Required Elements
Source
Destination CZ DC

12. Data Model 1st Pass: Review
Basic Structural Elements
Products
Sites
Demand
Sourcing Policies
Inventory Policies
Transportation Policies
What are the Required Elements of each?
What are the different Sourcing Policy Types?

13. Data Model 1st Pass: Walkthrough
Demand Enters the Network CZ DC
MFG
Demand
Customer (CZ) demands for a specific “Product”

14. Data Model 1st Pass: Walkthrough
Customer Source Selection SP CZ DC
MFG
Demand
CZ chooses appropriate source based on Sourcing Policy
Order placed at Distribution Center (DC) for quantity of product demanded

15. Data Model 1st Pass: Walkthrough
DC Inventory Review IP SP CZ DC
MFG
Demand
Not enough inventory at the DC to fill the order – The DC places a replenishment order

16. Data Model 1st Pass: Walkthrough
DC Source Selection IP SP SP CZ DC
MFG
Demand
DC has Need for Replenishment
DC chooses appropriate source (sourcing policy), creates order at Manufacturer (MFG)

17. Data Model 1st Pass: Walkthrough
MFG Inventory Review IP IP SP SP CZ DC
MFG
Demand
Inventory Sufficient to fill order – Create replenishment order

18. Data Model 1st Pass: Walkthrough
MFG Source Selection IP IP SP SP CZ DC
MFG
Demand SP
MFG has Need for Replenishment
Since the MFG has a “Make” sourcing policy, it creates production order

19. Data Model 1st Pass: Walkthrough
MFG Delivery to Customer through DC
Demand SP IP CZ DC
MFG TP
Production Complete, Shipping Item Created at MFG
Ship Quantity to CZ through DC by specified transportation policies
Order Complete

20. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand - Production
Scheduled Shipments - Delivery
Inventory Replenishment/Review
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

21. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
CZ Demand / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

22. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

23. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
MFG Inventory Check / Order Gen.

24. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
MFG Production -> 10/5/07 at 4:00 pm
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
MFG Inventory Check / Order Gen.
Production at MFG

25. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
MFG Production -> 10/5/07 at 4:00 pm
Shipment Leaves MFG -> 10/8/07 at 8:00 am
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Shipment Leaves MFG
MFG Inventory Check / Order Gen.
Production at MFG

26. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
MFG Production -> 10/5/07 at 4:00 pm
Shipment Leaves MFG -> 10/8/07 at 8:00 am
Shipment Arrives at DC -> 10/10/07 at 2:33 pm
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Shipment Leaves MFG
MFG Inventory Check / Order Gen.
Shipment Arrives at DC
Production at MFG

27. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
MFG Production -> 10/5/07 at 4:00 pm
Shipment Leaves MFG -> 10/8/07 at 8:00 am
Shipment Arrives at DC -> 10/10/07 at 2:33 pm
Shipment Leaves DC -> 10/11/07 at 8:00 am
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Shipment Leaves MFG
MFG Inventory Check / Order Gen.
Shipment Arrives at DC
Production at MFG
Shipment Leaves DC

28. Discrete Event Simulation
Think about it as events that are scheduled on a calendar
One event may lead to several other events being scheduled
Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ
DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC
MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG
MFG Production -> 10/5/07 at 4:00 pm
Shipment Leaves MFG -> 10/8/07 at 8:00 am
Shipment Arrives at DC -> 10/10/07 at 2:33 pm
Shipment Leaves DC -> 10/11/07 at 8:00 am
Shipment Arrives at CZ -> 10/11/07 at 2:22 pm
CZ Demand / Order Gen.
DC Inventory Check / Order Gen.
Sun
Mon
Tue
Wed
Thu
Fri
Sat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Shipment Leaves MFG
MFG Inventory Check / Order Gen.
Shipment Arrives at DC
Shipment Arrives at CZ
Production at MFG
Shipment Leaves DC

29. Data Model 1st Pass: Model Creation
Open Supply Chain Guru

30. Data Model 1st Pass: Model Creation
Add a New Model
Go to File  Add A New Model

31. Data Model 1st Pass: Model Creation
Save the Model in Training Folder
C://Llamasoft/Training
Save Model As:
Sim_Training_Basic
Save Project As:
Guru_Training

32. Data Model 1st Pass: Model Creation
Network Simulation Inputs
Sites, Products, Demand
Sourcing Polices
Inventory Policies
Transportation Policies

33. Data Model 1st Pass: Model Creation
The Model we will Build
3 Sites
1 Product
Demand SP IP CZ DC
MFG TP
Product

34. Data Model 1st Pass: Products
Add Products to the Guru Model
Name/SKU
Inventory Valuation
Price
Weight, Cubic
Status
Product

35. Data Model 1st Pass: Products
Add Products to the Guru Model
Open the Products Table
Add a Product with the following information:
Name: Product
Value: 5
Price: 10
Weight: 5
Cubic: 5
Type: Discrete
Status: Include

36. Data Model 1st Pass: Sites
Add Sites to the Guru Model
Name
Location (Address, City, State, Country, Postal Code, Latitude, Longitude)
Capacity Period, Capacity Basis
Fixed Startup Cost/Cap, Fixed Operating Cost/Cap
Closing Cost
MFG DC CZ

37. Data Model 1st Pass: Sites
Open the Sites Table
Add Customer Site:
Name: CZ
City: New York
State: New York
Type: Customer
Graphic: Circle
Graphic Color: Green

38. Data Model 1st Pass: Sites
Add Distribution Center:
Name: DC
City: Omaha
State: Nebraska
Type: Existing Facility
Graphic: Triangle
Graphic Color: Yellow

39. Data Model 1st Pass: Sites
Add Manufacturer:
Name: MFG
City: Los Angeles
State: California
Type: Existing Facility
Graphic: Square
Graphic Color: Red

40. Data Model 1st Pass: Sites
Display the Sites on the Map

41. Data Model 1st Pass: Demand
Add Demand to the Guru Model
- Customer Site - Time Between Orders
- Product - Due Date
- Quantity - Unit Price
- Occurrences CZ
Demand In

42. Data Model 1st Pass: Demand
Add Demand to the Guru Model
Open the Demand Table
Add (1) Demand Record with the following information:
Customer: CZ Due Date: 5 Day
Product: Product Occurrences: INF
Quantity: Time Between Orders: 1 WK
Order Time: 0

43. Data Model 1st Pass: ReviewIP IP SP SP CZ DC
MFG SP
Demand TP TP

44. Agenda Introduction Data Model 1st Pass: Basic Structure
Data Model 2nd Pass: Policy Detail
Sourcing Policies
Inventory Policies
Transportation Policies
Data Model 3rd Pass: Implementation

45. Data Model 2nd Pass: Sourcing
Sourcing Policies
Basic Types
Upstream Replenishment
Single Source
Multiple Sources
Self Replenishment
Make
Required Elements
Source
Destination
Product
Policy Type
Single Source CZ DC
Multiple Sources
DC1 CZ
DC2
Make
MFG

46. Data Model 2nd Pass: Sourcing
Available Sourcing Policies
Single Source
Multiple Sources (Most Inventory)
Multiple Sources (Order by Preference)
Multiple Sources (Probability)
Make – Single, Multiple (Order by Preference, Probability)
Custom

47. Data Model 2nd Pass: Sourcing
Sourcing Walkthrough Review SP CZ DC
MFG
Demand

48. Data Model 2nd Pass: Sourcing
Add Sourcing Policies to the Guru Model
For each Site/Product pair, define a Sourcing Policy linking the source to the destination site
MFG CZ DC
Product

49. Data Model 2nd Pass: Sourcing
Add Sourcing Policies to the Guru Model
Open the Sourcing Policies Table
Add a total of (3) Sourcing Policies
2 of type Single Source
Customer to DC
DC to Manufacturer
1 for each DC-Product combination
1 of type Make
1 for each product at the Manufacturer

50. Data Model 2nd Pass: Sourcing
Display the Sourcing Policies on the Map

51. Data Model 2nd Pass: ReviewIP IP SP SP CZ DC
MFG SP
Demand TP TP

52. Data Model 2nd Pass: Inventory
Inventory Policies
Required Elements
Site
Product
Policy Type DC IP

53. Data Model 2nd Pass: Inventory
Inventory Policy Detail
There are three things beyond site, product and policy that are also necessary for any inventory policy
Point at which you reorder, what threshold?
Reorder Point (RP)
Amount of which you order?
Reorder Quantity /
Order Up To Quantity (RQ)
When you check inventory levels?
Review Period (P) T RP Q RQ P

54. Data Model 2nd Pass: Inventory
Total Inventory Quantity Details
Quantity Ordered but not yet Received (COQ)
Current Units in Inventory
Days RP
Units RQ
Order Received
Current Inventory +
COQ
Order Placed

55. Data Model 2nd Pass: Inventory
Available Inventory Policies
Demand Flow
One for One Replenishment
R,Q
Fixed Reorder Point / Order Quantity
S,s
Fixed Reorder Point / Order Up To Quantity

56. Data Model 2nd Pass: Inventory
Available Inventory Policies
Demand Flow (one for one replenishment) Q T

57. Data Model 2nd Pass: Inventory
Available Inventory Policies
R,Q (fixed reorder point, reorder qty) Q T RP RQ

58. Data Model 2nd Pass: Inventory
Available Inventory Policies
S,s (Fixed reorder point, order up to point) Q T RP RQ

59. Data Model 2nd Pass: Inventory
Available Inventory Policies
S,s Targets
Change Reorder Point / Order Up To Qty by period
R,Q Targets
Change Reorder Point / Order Quantity by period
Custom Policy

60. Data Model 2nd Pass: Inventory
Available Inventory Policies
DOS Demand
Based on Previous Demand
DOS Window – Calculate Reorder Point and Order Up To Quantity
DOS Forecast
Based on Demand Forecast
DOS Window – Calculate Reorder point and Order Up To Quantity
Planning Lead Time (LT) – Offset Window for Seasonality
Time Window
Time Window LT

61. Data Model 2nd Pass: Inventory
Inventory Walkthrough Review IP SP CZ DC
MFG
Demand

62. Data Model 2nd Pass: Inventory
Add Inventory Policies to the Guru Model
One Inventory Policy is optional for each product at each non-Customer site.
Each Inventory Policy defines:
Initial Inventory levels
Safety/Cycle Stock Levels
Associated Costs DC
MFG
Product

63. Data Model 2nd Pass: Inventory
Add Inventory Policies to the Guru Model
Open the Inventory Policies Table
Add (2) Inventory Policies
One for each (non-Customer) Site-Product combination
Sites: MFG, DC
Products: Product
Leave all other fields at default value

64. Data Model 2nd Pass: ReviewIP IP SP SP CZ DC
MFG SP
Demand TP TP

65. Data Model 2nd Pass: Transportation
Transportation Policies
Required Elements
Source
Destination
Mode
Lane = Collection of Modes between a Source and Destination DC CZ
DC – CZ Lane

66. Data Model 2nd Pass: Transportation
Transportation Lane Details
Lane Elements:
Source Lane Queue Modes
Destination Mode Rules
Shipping Items Mode Queue
DC – CZ Lane DC
Source
Mode Queue
Mode 1
Mode 2
Modes CZ
Destination
Lane Queue
Mode
Rules
Shipping Item

67. Data Model 2nd Pass: Transportation
Transportation Mode Rules
Mode 1
Mode 2
Mode 3
Mode 4
Mode Rules CZ DC
DC – CZ Lane

68. Data Model 2nd Pass: Transportation
Transportation Mode Rule Details
First – selects the first mode alphabetically
First Available Asset – selects the mode with the first asset available
By Probability – Chooses mode based on chance/probability
On Due Date – Sends shipment on mode if necessary for on time
On QTY, Weight, Cubic – lists classes for each mode ( >0), (500-INF->500)
Queue Only – just place in queue do not ship
Custom Mode Selection
Mode 1
Mode 2
Mode 3
Mode 4 CZ DC
DC – CZ Lane

69. Data Model 2nd Pass: Transportation
Transportation Modes
LTL
Full TL
Periodic
Pooled
Modes CZ DC
DC – CZ Lane

70. Data Model 2nd Pass: Transportation
Transportation Mode Details
LTL
Full TL
Periodic
Pooled CZ DC
DC – CZ Lane
Full TL
Requires Asset, Fill level and Capacity
Released from Queue when full
LTL
Shipped Immediately
Periodic
Scheduled Shipments
Requires Shipment Period
Pooled (inbound and Outbound)
Multiple Stops/Deliveries (Milk Run)
Requires Asset, Fill Level and Capacity
Other
Parcel, air, rail and ship.
Function as LTL
If Asset is used, function as Full TL

71. Data Model 2nd Pass: Transportation
Transportation Assets
Elements
Name
Number of Units
Fill level (Weight or Cube)
Capacity (Weight or Cube)
Only Released if fill level reached
LTL
Full TL
Periodic
Pooled
Mode
Asset Required
Yes No DC CZ
DC – CZ Lane

72. Data Model 2nd Pass: Transportation
Transportation Costs
Applied to each mode
4 ways to Enter Costs
Number
Step Function
Dynamic Rate (Input Pipe)
Custom
Cost Basis – Qty, Distance, Weight
Cubic, etc.

73. Data Model 2nd Pass: Transportation
Transportation Policy Walkthrough
Shipping Item Queued at Lane
Order gets put into lane queue as a Shipping Item
Mode 1
Mode 2
Shipping Item
Lane Queue

74. Data Model 2nd Pass: Transportation
Transportation Policy Walkthrough
Review Period for Queue
Contents of Queue evaluated at Review Period
Mode 1
Mode 2
Shipping Item
Lane Queue

75. Data Model 2nd Pass: Transportation
Transportation Policy Walkthrough
Mode Rule Execution
Mode Selected by Mode Rule
Shipping Item Sent to Queue at the Mode
Mode 1
Mode 2
Shipping Item
Lane Queue
Mode
Rule

76. Data Model 2nd Pass: Transportation
Transportation Policy Walkthrough
Mode Behavior
Shipping Item Queued at the Mode
LTL - Ship Immediately
Full TL – Wait for Fill Level, then ship
Mode 1
Mode 2
Shipping Item
Lane Queue
Mode Queue
Mode
Rule

77. Data Model 2nd Pass: Transportation
Transportation Policy Walkthrough
Item Shipped
Item placed on appropriate mode, released to destination
Mode 1
Mode 2
Shipping Item
Lane Queue
Mode Queue
Mode
Decision

78. Data Model 2nd Pass: Transportation
Transportation Walkthrough Review IP IP SP SP CZ DC
MFG SP
Demand TP TP
Mode 1
Mode 2

79. Data Model 2nd Pass: Transportation
Add Transportation Policies to the Guru Model
There is at least one Transportation Policy that applies to a Sourcing Policy which is not “Make”
Each Transportation Policy defines a “Flow”:
Source Site
Destination Site
Product (all applicable products if not explicitly entered)
Mode (1 if not explicitly entered)
MFG DC CZ

80. Data Model 2nd Pass: Transportation
Add Transportation Policies to the Guru Model
Open the Transportation Policies Table
Add (2) Transportation Policies
One for each Source-Destination combination defined in Sourcing Policies
Sources: MFG, DC
Destinations: DC, CZ
Leave all other fields at default value

81. Data Model 2nd Pass: ReviewIP IP SP SP CZ DC
MFG SP
Demand TP TP
Mode 1
Mode 2

82. Agenda Introduction Data Model 1st Pass: Basic Structure
Data Model 2nd Pass: Policy Detail
Data Model 3rd Pass: Implementation
Additional Features
Output Analysis

83. Data Model 3rd Pass: Implementation
We have already created the Basic Structure of our Model
Products
Sites
Demand
Sourcing Policies
Inventory Policies
Transportation Policies
Lets try running our model!

84. Data Model 3rd Pass: Running the Model
Open the Model Options
Simulation Period (Tools -> Model Options (F3))
Specified by:
Start Date/Time
End Date/Time
Start Date/Time
End Date/Time

85. Data Model 3rd Pass: Running the Model
Open the Simulation Control Panel
Simulate -> Simulate Supply Chain (F7)
Hit Run!
Error Check?

86. Data Model 3rd Pass: Results Analysis
Analyzing the Results
Simulation Output Tables
Network Summary
Site Summary
Product Summary
Inventory Details
Service Details
Shipment Transactions

87. Data Model 3rd Pass: Additional Details
Additional Details we will add/change:
Inventory
Policies
Costs
Transportation
Times
Sourcing

88. Data Model 3rd Pass: Inventory
Open the Inventory Policies Table
Add Policies & Costs
DC – Product MFG – Product
Policy = R,Q Policy = s,S
Reorder Point = Reorder Point = 500
Reorder Qty = Reorder Qty = 1000
Review Period = Daily Review Period = Daily
Initial Inventory = Initial Inventory = 750
Inbound Cost = Inbound Cost = 0.3
Outbound Cost = Inbound Cost = 0.3

89. Data Model 3rd Pass: Transportation
Transportation Policy Modification
Open the Demand Table
Add An Additional Demand
CZ, Product, 50, 0, 5 DAY, INF, 2 WK
Open the Transportation Policies Table
Create an additional DC -> CZ Policy, mode 2
Set the Following:
Mode 1 Mode 2
Mode Rule: On Qty Mode Rule: On Qty
Parameter: 0 Parameter:125
Cost: Cost:0.3

90. Data Model 3rd Pass: Sourcing
Sourcing Policies Modification
Open the Sites Table
Add An Additional DC to the sites table
DC_2, location = Dallas, TX, 75201
Auto Generate Alternative Sources
Replicate DC inventory, sourcing, and transportation policies for DC_2
Open the Sourcing Policies Table
Modify the sourcing policies for DC and DC_2
Set both sourcing policies to Multiple Sources(Probability)
Set both parameters to 50
Set the Sourcing Cost of the Make Policy to 1

91. Data Model 3rd Pass: Results Analysis
Analyzing the Results
Simulation Output Tables
Network Summary
Site Summary
Product Summary
Inventory Details
Service Details
Shipment Transactions

92. Final Review IP IP SP SP CZ DC
MFG SP
Demand TP TP
Mode 1
Mode 2