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Inventory

This table is used within the simulation-based experiments only (i.e., Simulation, Variation, Comparison, Safety Stock Estimation, and Risk Analysis). In the Inventory table you define inventory policies for your supply chain facilities.

anyLogistix also allows you to define any custom inventory policies.

The measurement units and available currencies used throughout the scenario can be changed in the Units section of anyLogistix Settings.

Column Description

Facility

The facility for which the inventory policy is specified.

Double-click the cell to select the facility from the list (the list is taken from the DCs and Factories table).

You can apply the same inventory policy for all facilities. In this case select here All sites, and define the inventory parameters in the succeeding columns.

Product

The product for which the inventory policy is being defined. Double-click in the cell and choose the required product from the list (it lists all products defined in the Products table).

Policy Type

Defines the inventory replenishment policy. anyLogistix offers a set of standard policies:

You may as well define any custom inventory policies. If such polices are defined, they will appear at the bottom of the list.

Note that the actual quantity of the replenishment orders can be adjusted in accordance with the facility's Capacity (defined in the DCs and Factories table).

Policy Parameters

Here you specify the parameters of the inventory policy selected in the Policy Type.

Double-click in the cell and provide the inventory policy parameter values in the appeared dialog box.

The set of parameters depends on the chosen policy.

Initial Stock, units

Defines the initial quantity of products available in stock at the specified site.

Can be overridden by the corresponding data if Initial state is defined.

If Unlimited inventory is chosen in the Policy Type column, the Initial Stock value is set to infinity, and the user cannot modify this value. It means that the specified Product is always available in any required quantity at this Facility.

The initial stock is applied only to the inventory records the Time Periods of which is set to the first period (in case several periods are defined in the Periods table).

Periodic Check

Applies only if Policy Type is not set to Unlimited inventory.

This option allows the user to choose whether this facility uses periodic or perpetual inventory system.

If this option is enabled, the inventory system is periodic. In this case inventory is checked not on every single product shipment / sale, but with the specified period (defined in the next column, Period). Making the inventory periodic, you can increase the system performance by reducing the amount of calculations.

Period

Applies only if the Periodic Check option is selected.

Here you specify the period of inventory check. Period is expressed in the units specified in theTime Unit column.

First Periodic Check

Applies only if the Periodic Check option is selected.

The default date is the scenario's start date.

Defines the moment in time (within the simulation period) that is used as a starting point from which the Period (of the Periodic Check) is calculated.

e.g. Assume that scenario starts on 01.01.2019 and the Period is set to 3 days. In this case the facility checks inventory every three days starting on the first simulation day.(01.01.2019).
If we set First Periodic Check to 01.04.2019 and then run the experiment, the facility will check inventory every three days starting on the fourth simulation day.(01.04.2019). The following periodic checks will shift accordingly.

Policy Basis

Applies only if Policy Type is not set to Unlimited inventory, No replenishment.
Defines the type of policy basis:

  • Quantity - selected by default. The inventory policy parameters specified in the Policy parameters cell define quantities of product items.
  • Days of supply historic - the inventory policy parameters specified in the Policy Parameters cell act as ratios that are multiplied by mean daily demand for this specific Facility and Product to get the actual ordered quantity.

    Mean daily demand is calculated for the number of days specified in the Stock Calculation Window column.

Stock Calculation window

Applies only if Policy Basis is set to Days of supply historic.

Defines the number of days for which the mean daily demand must be calculated (data is taken from Demand or Demand Forecast tables).

Time Unit

Specify the time unit that the Period is expressed in.

The list of available units comprises the units defined in the anyLogistix Settings.

Time Period

The time period during which the inventory policy will be considered.

Double-click the corresponding row cell to choose among the available periods (previously defined in the Periods table).

Inclusion Type

Defines the status of the given inventory policy:

  • Include - include this inventory policy into supply chain configuration.
  • Exclude - exclude this inventory policy from supply chain configuration. If selected, the table record will be grayed out to denote the current inclusion type. The table record stays editable.

    If you feel that your scenario contains too many objects marked as "Excluded" and you know that you no longer use them, you can instantly remove all such objects.

Inventory policy types

Min-max policy

Products are ordered when the inventory level falls below a fixed replenishment point (s). The ordered quantity is set to such a value that the resulting inventory quantity equals the desired maximum inventory capacity (S).
The Min-max policy is also named the(s, S) inventory policy.

Min-max policy parameters
  • Min - the minimum inventory level s that triggers replenishment when inventory level falls below this value.
  • Max - the desired inventory level S.
    e.g. The Min and Max parameters are set to 100 and 500 respectively. Once the inventory level falls below 100 units (e.g. down to 50 units), the DC will place a replenishment order for 550 units.

Min-max policy with safety stock

Min-max policy with safety stock - the (s, S) inventory policy with a safety stock. Products are ordered when the inventory level falls below a fixed replenishment point (s + safety stock).

The ordered quantity is set to such a value that the resulting inventory quantity equals S + safety stock.

Min-max with safety stock policy parameters
  • Min - the minimum inventory level s.
  • Max - the desired inventory level S.
  • Safety stock - the required safety stock

RQ policy

RQ policy - when the inventory level falls below a fixed replenishment point (R), the fixed replenishment quantity (Q) of products is ordered.
RQ policy parameters
  • R - the minimum inventory level that triggers replenishment order.
  • Q - the required replenishment amount that is ordered once the inventory level is less than R.

Unlimited inventory

Unlimited inventory is selected by default. The policy has no parameters to define, since we assume that the products are always in stock in any required quantity.

Order on demand

Order on demand - DC does not keep products in stock. The policy has no parameters to define. The required number of products is ordered only on receiving an order from a customer/factory or other DC.

Material Requirements Planning

Material Requirements Planning (MRP policy) schedules inventory replenishment based on safety stock level. Once the policy detects possible safety stock violation, it estimates the required amount of products, and defines the date on which the order must be placed to timely replenish the inventory.
Here's a detailed explanation of how Material Requirements Planning works.

MRP policy parameters
  • Days for report creation - the period of time, during which the possible safety stock violation will be analyzed.
  • Min order quantity - the minimum amount of products that can be ordered.
  • Mult order quantity - the amount of products the Min order quantity can be increased by.
  • Max order quantity - the maximum amount of products that can be ordered.
  • Aggregation period, days - the period of time, during which the orders will be aggregated, if required.
  • Expected lead time - difference (in days) between the replenishment and the placed orders, i.e., the delivery time, during which the products are expected to be received.
  • Safety stock quantity - [overrides Safety stock horizon] the amount of safety stock, which triggers inventory replenishment if violated.
  • Safety stock horizon - [it is calculated automatically if Safety stock quantity is not specified] defines the number of days that are used to calculate average safety stock.
  • Days of safety stock - defines the number of days of average safety stock the specified Facility must have.
  • Period of supply - the period of time after the possible safety stock violation, for which demand must be covered.

Regular policy

If the Regular policy is selected [the Periodic check option must be enabled], the products are ordered every specified Period.

Regular policy parameters
  • Quantity - the required replenishment amount that will be ordered.

Regular policy with safety stock

If the Regular policy with safety stock is selected [the Periodic check option must be enabled], the products are ordered every specified Period considering the Safety Stock.

Regular policy with safety parameters
  • Quantity - the required replenishment amount.
  • Safety stock - the required safety stock.

No replenishment

No replenishment policy - a DC will not be replenishing its inventory. If certain initial stock is available, DC will be shipping products until it runs out of stock.
The policy has no parameters to define.

XDock policy

XDock policy - a DC operates like a cross-docking facility. It does not have inventory, it only transfers products from one type of transport to another.

XDock policy parameters
  • XDock policy - the custom pre-defined extension. No action required.
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