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Ordering Rules

This table is used within the simulation-based experiments only (i.e., Simulation, Variation, Comparison, Safety Stock Estimation, and Risk Analysis).

Certain source sites of your supply chain may offer a product in batches. The batch size is a certain limit of the product amount that can be ordered from the source site (defined in the Sale Batch table). The batch size does not necessarily correspond to the amount of products required by the destination (defined by the destination Inventory policy). Ordering rules allow you to vary the required amount value within the specified Limit, units so that it corresponds to the sale batch size.

Column Description

Destination

Defines the desired product destination specified by the user.

Double-click the corresponding row cell to choose among the available destinations (previously defined in the Customers, DCs and Factories and Groups tables).

Product

Defines the desired product specified by the user.

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

Rule

Allows you to choose the applicable ordering rule:

  • Can increase - allows you to increase the order volume within the specified Limit, units value.
  • Can decrease - allows you to decrease the order volume within the specified Limit, units value.

For example, a DC offers a product in batches of 200 items per batch. A customer needs to purchase 150 items. Let us assume we have defined the Can increase ordering policy for the customer with the Limit, units set to 50 product items. In this case the customer is allowed to adjust its order from 150 to 200 product items.

  • The batch with the closest value is always chosen.
  • In case of two identical differences, the smaller batch will be chosen.
    e.g. If a customer needs 150 items and the Can Increase and Can decrease parameters are both set to 50 items, then the smaller batch of 100 will be chosen.

If needed, you can define both increasing and decreasing rules for the same Destinationand Product (in two separate table entries).

Limit, units

Defines the limit for increasing or decreasing the ordered amount.

Double-click to manually specify the limit.

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