Development of simulation model to support changing of stock and time buffer management policies throughout the global supply chain of electronic devices. The model captured the supply chain from tier 2 suppliers of components to shelves of retail stores in more than 30 countries.
Period: September 2015 – February 2016
Industry: Electronics
Client / Partner: Microsoft / Goldratt Research Labs
Project objective
Offer the algorithms of stocks planning that allow to reduce the dependency of target stock level on sales forecasting accuracy
The main stages of work and characteristics of the model
- Setting up a modeling problem
- Development of the simulation model
- Verification of the model
- Technical and methodological support of scenario analysis using the model
Model input data
- Actual opening balances of end-products in warehouses
- Information about inventory value
- Forecast of demand by storage units
- Actual quantity of shipments every day from every distribution center
- Parameters of suggested inventory management algorithms
The main structural elements of the model
- Input data file of scenario in MS Excel format
- Simulation model with interactive presentation, batch launch mode for fast scenario comparison, mode of sensitivity analysis
Model output data
- Inventory movement in any modeling period
- Comparison of modeling and actual stock value
- Service level of delivery points supply
Project result
- Testing of suggested replenishment algorithms
- Demonstration of the effect of suggested algorithms using the comparison of the results of modeling with historical data
- The simulation model is passed to the client for further use as an analytical tool for medium-term planning