Dynamic forecasting & optimization can be used to streamline flows better (meaning, with lesser inventory and wastage) than traditional MIN/MAX approaches. Even in pull supply chains, optimized decision support is presented to users in the order screen, and users can override the recommendations based on tactical knowledge of their storage capacity or other local conditions. Reason codes for overrides can be configured as mandatory.
Historical pattern of adherence to decision support can be tracked to retrain algorithms. The system supports typical global replenishment models, such as MIN/MAX, top-up, kanban, etc.
The different functions are:
- Forecasting demand
Recommending optimal order quantities
- Predicting stock outs
To learn about
- using stock out predictions, click here
- configuring demand forecasting or optimal order quantities, click here