Integrated Inventory Optimization Tool for Uralkali

Integrated Inventory Optimization Tool for Uralkali

Development of simulation model for productive reserves planning material consumption on warehouses. Client — Uralkali, one of the world’s largest potash producers.

Period: December 2015 – December 2016
Industry: Mining
Client / Partner: Uralkali

Project objective

Development of the materials consumption and stock replenishment simulation model on warehouses of Uralkali

The main stages of work and characteristics of the model

  • The simulation model concept development
  • Development of the simulation model: optimization tool, interface, data analysis tool on the Deductor platform
  • Verification and validation of the simulation model
  • Testing and taking part in model implementation
  • Users’ training for client’s personnel
  • Technical and methodological support

Model input data

  • Information about materials (materials group, base unit of measurement, planned delivery time, etc.)
  • Actual opening balance of materials in warehouses
  • Flow of materials during the previous periods
  • Information about repair orders

The main structural elements of the model

  • Input data file of scenario in MS Excel format
  • Simulation model with interactive presentation
  • Data aggregation module that allows to generate MS Excel files with the simulation results

Model output data

  • Service level of material supply in percentage terms
  • Average stock level in general and by warehouses

Project result

  • Determination of the best materials replenishment policies on central and divisions’ warehouses
  • Comparison of different replenishment policies by effectiveness
  • Estimation of economic benefits from suggested changes based on comparison of simulation results with the historical data