1. © The Delos Partnership 2006 page 1 Supply Chain Techniques Choices to be made when deciding how to plan

2. © The Delos Partnership 2006 page 2 Policy affects MPS Model Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time End Item Model Planning Bill of Material Bill of Activity Or Project

3. © The Delos Partnership 2006 page 3 Make to Stock Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Customer Places Order here Customer Places Order here

4. © The Delos Partnership 2006 page 4 Make to Order Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Customer Places Order here Customer Places Order here

5. © The Delos Partnership 2006 page 5 Periods123456789101112 Forecast 25 20 Actual Demand Proj Avail Balance 7550250502505030106545 Available to Promise Cumulative ATP Master Schedule 75 Item Level Forecast Part Number: 12345 Lead Time: 2 periods Safety Stock: 0 Min Ord Qty: 75 On Hand: 100

6. © The Delos Partnership 2006 page 6 Customer Profile Customer X 50per month Customer Y 10 per month Customer Z 5 per month Customers A… 35 per month Total =100 per month Forecast at End Item Level

7. © The Delos Partnership 2006 page 7 End Item Level Forecast Periods123456789101112 Forecast 25 20 Actual Demand Proj Avail Balance 7550250502505030106545 Available to Promise 10075 Cumulative ATP Master Schedule 75 Part Number: 12345 Lead Time: 2 periods Safety Stock: 0 Min Ord Qty: 75 On Hand: 100

8. © The Delos Partnership 2006 page 8 Assemble to Order Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Customer Places Order here Customer Places Order here

9. © The Delos Partnership 2006 page 9 Cumulative Lead Time Blue Pen Part Number 12348 Blue Pen Part Number 12348 Pen Barrel Part Number 43768 Pen Barrel Part Number 43768 Finished Nib Part Number 76452 Finished Nib Part Number 76452 Cap Part Number 89563 Cap Part Number 89563 Semi finished Nib Part Number 76532 Semi finished Nib Part Number 76532 Ink Part Number 10675 Ink Part Number 10675 Felt tip Part Number 10783 Felt tip Part Number 10783 Lead Time = 5 weeks Lead Time = 1 weeks Lead Time = 6 weeks Lead Time = 4 weeks Lead Time = 1 weeks CUMLEADTIMECUMLEADTIME

10. © The Delos Partnership 2006 page 10 Customer Lead Time = 1 week BluePen Part Number 12345 BluePen Part Number 12345 Pen Barrel Part Number 43768 Pen Barrel Part Number 43768 Finished Nib Part Number 76452 Finished Nib Part Number 76452 Cap Part Number 89563 Cap Part Number 89563 Semi finished Nib Part Number 76532 Semi finished Nib Part Number 76532 Ink Part Number 10675 Ink Part Number 10675 Felt tip Part Number 10783 Felt tip Part Number 10783 Lead Time = 5 weeks Lead Time = 1 weeks Lead Time = 6 weeks Lead Time = 8 weeks Lead Time = 1 weeks CUMLEADTIMECUMLEADTIME Customer Lead Time

11. © The Delos Partnership 2006 page 11 Product Variants Blue Pen Part Number 12346 Blue Pen Part Number 12346 Red Pen Part Number 12345 Red Pen Part Number 12345 Black Pen Part Number 12347 Black Pen Part Number 12347 Green Pen Part Number 12348 Green Pen Part Number 12348 VariantForecastActual Blue4050 Red6070 Black3020 Green7060 Total200 How many Nibs And How many Caps and barrels Needed ? How many Nibs And How many Caps and barrels Needed ?

12. © The Delos Partnership 2006 page 12 Planning Family Blue Option Part Number 12346 Blue Option Part Number 12346 Red Option Part Number 12345 Red Option Part Number 12345 Black Option Part Number 12347 Black Option Part Number 12347 Green Option Part Number 12348 Green Option Part Number 12348 Common Parts 46783 Common Parts 46783 Pen Family 43785 Pen Family 43785 20 % = 0.2 30 % = 0.3 15 % = 0.15 35 % = 0.35 Forecast = 200/mth 100 % = 1.0

13. © The Delos Partnership 2006 page 13 Periods123456789101112 Forecast 0204050 Actual Demand 503010 Proj Avail Balance 000000000000 Available to Promise 0204050 Master Schedule 50 Periods123456789101112 Dependent Forecast 04810 Actual Demand 1171 Proj Avail Balance Available to Promise Master Schedule Blue Option Part Number 12346 Blue Option Part Number 12346 20 %

14. © The Delos Partnership 2006 page 14 Periods123456789101112 Forecast 0204050 Actual Demand 503010 Proj Avail Balance 000000000000 Available to Promise 0204050 Master Schedule 50 Periods123456789101112 Dependent Forecast 04810 Actual Demand 1171 Proj Avail Balance 0 Available to Promise 010 Master Schedule 1110 Blue Option Part Number 12346 Blue Option Part Number 12346 20 %

15. © The Delos Partnership 2006 page 15 Periods123456789101112 Forecast 0204050 Actual Demand 503010 Proj Avail Balance 000000000000 Available to Promise 0204050 Master Schedule 50 Periods123456789101112 Dependent Forecast 04810 Actual Demand 1171 Proj Avail Balance 002244444444 Available to Promise 0610 Master Schedule 11131110 Blue Option Part Number 12346 Blue Option Part Number 12346 20 % Overplan

16. © The Delos Partnership 2006 page 16 Planning Family Blue Option Part Number 12346 Blue Option Part Number 12346 Red Option Part Number 12345 Red Option Part Number 12345 Black Option Part Number 12347 Black Option Part Number 12347 Green Option Part Number 12348 Green Option Part Number 12348 Common Parts 46783 Common Parts 46783 Pen Family 43785 Pen Family 43785 20 % = 0.2 30 % = 0.3 15 % = 0.15 35 % = 0.35 Forecast = 200/mth 100 % = 1.0 INVENSTMENTINVENSTMENT

17. © The Delos Partnership 2006 page 17 Standard EOQ Schedule 12345678910 A 30 20 B 1030 10 C 203010 D 2010 E 20 Total 30

18. © The Delos Partnership 2006 page 18 Order Quantity 100200300400500600 Set up cost per unit £5.00£ 2.50£ 1.67£ 1.25£ 1.00£ 0.83 Number of batches pa 126432.42 Total Set up cost £ 6,000£ 3,000£ 2,000£ 1,500 £ 1,200£ 1,000 Average Inventory £ 50100 150 200 250300 Inventory Cost @ 20 % £ 500£ 1,000£ 1,500£ 2,000£ 2,500£ 3,000 Total Cost £ 6, 500£ 4,000£ 3,500 £ 3,700£ 4,000 Set up Cost per batch = £ 500Annual Usage = 1,200 Inventory Cost = 20 % Cost per unit = £ 50.00 “Minimum” OQ

19. © The Delos Partnership 2006 page 19 Order Quantity 100200300400500600 Set up cost per unit £5.00£ 2.50£ 1.67£ 1.25£ 1.00£ 0.83 Number of batches pa 126432.42 Total Set up cost £ 6,000£ 3,000£ 2,000£ 1,500 £ 1,200£ 1,000 Average Inventory £ 50100 150 200 250300 Inventory Cost @ 20 % £ 500£ 1,000£ 1,500£ 2,000£ 2,500£ 3,000 Total Cost £ 6, 500£ 4,000£ 3,500 £ 3,700£ 4,000 Set up Cost per batch = £ 0Annual Usage = 1,200 Inventory Cost = 20 % Cost per unit = £ 50.00 Min OQ

20. © The Delos Partnership 2006 page 20 Mixed Model Schedule 12345678910 A 14 B 8888888888 C 5555555555 D 2222222222 E 1111111111 Tot 30

21. © The Delos Partnership 2006 page 21 End Item Level Forecast Periods123456789101112 Forecast 14 Actual Demand Proj Avail Balance 000000000000 Available to Promise 14 Cumulative ATP Master Schedule 14 Part Number: 12345 Lead Time: 2 periods Safety Stock: 0 Min Ord Qty: 1/1 On Hand: 0

22. © The Delos Partnership 2006 page 22 Make to Stock Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Customer Places Order here Customer Places Order here

23. © The Delos Partnership 2006 page 23 Global Supply Chain planning Same product in different geographical location Lead Time separates two locations Central management of inventory enabled

24. © The Delos Partnership 2006 page 24 Global Supply Chain Planning Bill of Distribution Same Product Code : Location code needed

25. © The Delos Partnership 2006 page 25 Distribution Planning Process Receive Forecast Calculate Plan CaptureData BALANCED PLAN Hold Supply Review Transmit the plan Receive Supply Plan Review action messages messages ReviewMessages

26. © The Delos Partnership 2006 page 26 Periods123456789101112 Forecast25 20 Warehous e Demand Actual Demand Proj Avail Balance Available to Promise Master Schedule 150 Master Schedule UK Part Number: 12345 Lead Time: 2 periods Safety Stock: 50 Min Ord Qty: 150 On Hand: 300 Location : 001 UK

27. © The Delos Partnership 2006 page 27 Periods123456789101112 Forecast025 20 Warehouse Demand 100 150 5015010050 Actual Demand 25 Proj Avail Balance 27515075501751501751008060190170 Available to Promise 125015000 Master Schedule 150 Master Schedule - UK Part Number: 12345 Lead Time: 2 periods Safety Stock: 50 Min Ord Qty: 150 On Hand: 300 Location : 001 UK

28. © The Delos Partnership 2006 page 28 Periods123456789101112 Forecast520 Actual Demand 15 Proj Avail Balance 60402010080604020100806040 Available to Promise 65100 Master Schedule 100 Planned Release 100 DRP - Germany Part Number: 12345 Lead Time: 2 periods Safety Stock: 20 Min Ord Qty: 100 On Hand: 80 Location : 002 Germany

29. © The Delos Partnership 2006 page 29 Periods123456789101112 Forecast2040 Actual Demand 20 Proj Avail Balance 50160120801901501107018014011070 Available to Promise 70150 Master Schedule 150 * 150 Planned Release 150 DRP Spain Part Number: 12345 Lead Time: 3 periods Safety Stock: 50 Min Ord Qty: 150 On Hand: 90 Location : 003 Spain * In Transit

30. © The Delos Partnership 2006 page 30 Periods123456789101112 Forecast0010 Actual Demand 20 Proj Avail Balance 50 40302060504030206050 Available to Promise 50 Master Schedule 50 Planned Release 50 DRP Italy Part Number: 12345 Lead Time: 3 periods Safety Stock: 20 Min Ord Qty: 50 On Hand: 70 Location : 004 Italy

31. © The Delos Partnership 2006 page 31 Engineer or Design to Order Design Purchase Intermediate Manufacture Sub-assemble Finish Distribute Cumulative Lead Time Customer Places Order here Customer Places Order here

32. © The Delos Partnership 2006 page 32 Project Management Needs Management across all the projects

33. © The Delos Partnership 2006 page 33 Bill of Activity – Link with Planning Ship Pack Process Validation Process Validation Develop Process Develop Process Source Material Source Material Develop Materials Develop Materials Source Equipment Source Equipment Design Layout Design Layout Lt = 2 weeks Lt = 6 weeks Raw Material Raw Material Lt = 4 weeks Lt = 10 weeks Lt = 10 weeks Lt = 6 weeks Lt = 6 weeks

34. © The Delos Partnership 2006 page 34 Master Scheduling Options Summary  Models can change depending on Service level / Customer Lead Time Inventory Level in BOM Set up reduction activity  Requires careful review of planning models  Determining where to meet customer is key