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Guru Simulation Training. Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass:

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Presentation on theme: "Guru Simulation Training. Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass:"— Presentation transcript:

1 Guru Simulation Training

2 Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass: Implementation

3 Agenda 1.Introduction What are we going to Cover? 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass: Implementation

4 Introduction to the Data Model 1.Data Model 1 st Pass: High Level Structure 30,000 Ft view Basic structural pieces 2.Data Model 2 nd Pass: Policy Detail 15,000 Ft view Integrate details about inventory, sourcing and transportation policies 3.Data Model 3 rd Pass: Implementation 1000 Ft view How are the Guru Tables used to create a model

5 Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure Basic Structural Elements Walkthrough of Events 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass: Implementation

6 Data Model 1 st Pass: Basic Structure Products Required Elements

7 Data Model 1 st Pass: Basic Structure Sites –Required Elements –Name – Unique –Location – Lat/Long or Street Address –Type – Customer (Demand Point) or Facility (Hold Inventory)CZCZDCDCMFGMFG

8 Data Model 1 st Pass: Basic Structure Demand –Required Elements Site Product Time Quantity Demand CZCZ

9 Data Model 1 st Pass: Basic Structure Sourcing Policies –Determines where the order will be sourced from –Types of Policies Single Source Multiple Sources Make –Required Elements Source Destination Product Policy CZCZDCDC Single Source Multiple Sources Make CZCZ DC1DC1 DC2DC2 MFGMFG

10 Data Model 1 st Pass: Basic Structure Inventory Policies –Specifies when and how to replenish inventory –Required Elements Site Product Policy DCDC IP

11 Data Model 1 st Pass: Basic Structure Transportation Policies –Required Elements Source DestinationCZCZDCDC

12 Basic Structural Elements Products Sites Demand Sourcing Policies Inventory Policies Transportation Policies What are the Required Elements of each? What are the different Sourcing Policy Types? Data Model 1 st Pass: Review

13 1.Demand Enters the NetworkCZCZDCDCMFGMFG Demand Customer (CZ) demands for a specific “Product” Data Model 1 st Pass: Walkthrough

14 2.Customer Source Selection Demand CZ chooses appropriate source based on Sourcing Policy Order placed at Distribution Center (DC) for quantity of product demanded SPCZCZDCDCMFGMFG Data Model 1 st Pass: Walkthrough

15 3.DC Inventory Review Demand Not enough inventory at the DC to fill the order – The DC places a replenishment order SP IPCZCZDCDCMFGMFG Data Model 1 st Pass: Walkthrough

16 4.DC Source Selection Demand DC has Need for Replenishment DC chooses appropriate source (sourcing policy), creates order at Manufacturer (MFG) SP IP SPCZCZDCDCMFGMFG Data Model 1 st Pass: Walkthrough

17 6.MFG Inventory Review Demand Inventory Sufficient to fill order – Create replenishment order SP IPCZCZDCDCMFGMFG SP IP Data Model 1 st Pass: Walkthrough

18 8.MFG Source Selection Demand MFG has Need for Replenishment Since the MFG has a “Make” sourcing policy, it creates production order SP IP SPCZCZDCDCMFGMFG IP SP Data Model 1 st Pass: Walkthrough

19 9.MFG Delivery to Customer through DC Production Complete, Shipping Item Created at MFG Ship Quantity to CZ through DC by specified transportation policies Order Complete Demand SP IP SP CZCZDCDCMFGMFG IP SP TP Data Model 1 st Pass: Walkthrough

20 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled -Demand- Production -Scheduled Shipments- Delivery -Inventory Replenishment/Review SunMonTueWedThuFriSat

21 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ SunMonTueWedThuFriSat CZ Demand / Order Gen.

22 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen.

23 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen.

24 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG –MFG Production -> 10/5/07 at 4:00 pm SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen. Production at MFG

25 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG –MFG Production -> 10/5/07 at 4:00 pm –Shipment Leaves MFG -> 10/8/07 at 8:00 am SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen. Production at MFG Shipment Leaves MFG

26 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG –MFG Production -> 10/5/07 at 4:00 pm –Shipment Leaves MFG -> 10/8/07 at 8:00 am –Shipment Arrives at DC -> 10/10/07 at 2:33 pm SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen. Production at MFG Shipment Leaves MFG Shipment Arrives at DC

27 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG –MFG Production -> 10/5/07 at 4:00 pm –Shipment Leaves MFG -> 10/8/07 at 8:00 am –Shipment Arrives at DC -> 10/10/07 at 2:33 pm –Shipment Leaves DC -> 10/11/07 at 8:00 am SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen. Production at MFG Shipment Leaves MFG Shipment Arrives at DC Shipment Leaves DC

28 Discrete Event Simulation Think about it as events that are scheduled on a calendar One event may lead to several other events being scheduled –Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ –DC Inventory Review -> 10/3/07 at 12:00 am -> Order by DC –MFG Inventory Review -> 10/4/07 at 12:00 am -> Order by MFG –MFG Production -> 10/5/07 at 4:00 pm –Shipment Leaves MFG -> 10/8/07 at 8:00 am –Shipment Arrives at DC -> 10/10/07 at 2:33 pm –Shipment Leaves DC -> 10/11/07 at 8:00 am –Shipment Arrives at CZ -> 10/11/07 at 2:22 pm SunMonTueWedThuFriSat CZ Demand / Order Gen. DC Inventory Check / Order Gen. MFG Inventory Check / Order Gen. Production at MFG Shipment Leaves MFG Shipment Arrives at DC Shipment Leaves DC Shipment Arrives at CZ

29 Data Model 1 st Pass: Model Creation Open Supply Chain Guru

30 Data Model 1 st Pass: Model Creation Add a New Model –Go to File  Add A New Model

31 Data Model 1 st Pass: Model Creation Save the Model in Training Folder –C://Llamasoft/Training –Save Model As: Sim_Training_Basic –Save Project As: Guru_Training

32 Data Model 1 st Pass: Model Creation Network Simulation Inputs Sites, Products, Demand Sourcing Polices Inventory Policies Transportation Policies

33 Data Model 1 st Pass: Model Creation The Model we will Build 3 Sites 1 Product ProductProduct Demand SP IP SP CZCZDCDCMFGMFG IP SP TP

34 Data Model 1 st Pass: Products Add Products to the Guru Model Name/SKU Inventory Valuation Price Weight, Cubic Status ProductProduct

35 Add Products to the Guru Model Open the Products Table Add a Product with the following information: Data Model 1 st Pass: Products Name: Product Value: 5 Price: 10 Weight: 5 Cubic: 5 Type: Discrete Status: Include

36 Data Model 1 st Pass: Sites Add Sites to the Guru Model –Name –Location (Address, City, State, Country, Postal Code, Latitude, Longitude) –Capacity Period, Capacity Basis –Fixed Startup Cost/Cap, Fixed Operating Cost/Cap –Closing CostMFGMFGDCDCCZCZ

37 Open the Sites Table Data Model 1 st Pass: Sites 1.Add Customer Site: –Name: CZ –City: New York –State: New York –Type: Customer –Graphic: Circle –Graphic Color: Green

38 Data Model 1 st Pass: Sites 2.Add Distribution Center: –Name: DC –City: Omaha –State: Nebraska –Type: Existing Facility –Graphic: Triangle –Graphic Color: Yellow

39 3.Add Manufacturer: –Name: MFG –City: Los Angeles –State: California –Type: Existing Facility –Graphic: Square –Graphic Color: Red Data Model 1 st Pass: Sites

40 Display the Sites on the Map Data Model 1 st Pass: Sites

41 Data Model 1 st Pass: Demand Add Demand to the Guru Model - Customer Site- Time Between Orders - Product- Due Date - Quantity- Unit Price - Occurrences CZCZ Demand In

42 Data Model 1 st Pass: Demand Add Demand to the Guru Model –Open the Demand Table –Add (1) Demand Record with the following information: Customer: CZDue Date: 5 Day Product: ProductOccurrences: INF Quantity: 100Time Between Orders: 1 WK Order Time: 0

43 Data Model 1 st Pass: Review Demand SP IP SP CZCZDCDCMFGMFG IP SP TP

44 Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail Sourcing Policies Inventory Policies Transportation Policies 4.Data Model 3 rd Pass: Implementation

45 Data Model 2 nd Pass: Sourcing Sourcing Policies –Basic Types Upstream Replenishment –Single Source –Multiple Sources Self Replenishment –Make –Required Elements Source Destination Product Policy Type CZCZDCDC Single Source Multiple Sources Make CZCZ DC1DC1 DC2DC2 MFGMFG

46 Data Model 2 nd Pass: Sourcing Available Sourcing Policies 1.Single Source 2.Multiple Sources (Most Inventory) 3.Multiple Sources (Order by Preference) 4.Multiple Sources (Probability) 5.Make – Single, Multiple (Order by Preference, Probability) 6.Custom

47 Data Model 2 nd Pass: Sourcing Demand SP CZCZDCDCMFGMFG Sourcing Walkthrough Review

48 Data Model 2 nd Pass: Sourcing Add Sourcing Policies to the Guru Model –For each Site/Product pair, define a Sourcing Policy linking the source to the destination siteMFGMFGCZCZDCDC Product

49 Add Sourcing Policies to the Guru Model Data Model 2 nd Pass: Sourcing –Open the Sourcing Policies Table –Add a total of (3) Sourcing Policies –2 of type Single Source »Customer to DC »DC to Manufacturer »1 for each DC-Product combination –1 of type Make »1 for each product at the Manufacturer

50 Display the Sourcing Policies on the Map Data Model 2 nd Pass: Sourcing

51 Data Model 2 nd Pass: Review Demand SP IP SP CZCZDCDCMFGMFG IP SP TP

52 Data Model 2 nd Pass: Inventory Inventory Policies Required Elements »Site »Product »Policy Type DCDC IP

53 Data Model 2 nd Pass: Inventory Inventory Policy Detail There are three things beyond site, product and policy that are also necessary for any inventory policy 1.Point at which you reorder, what threshold? Reorder Point (RP) 2.Amount of which you order? Reorder Quantity / Order Up To Quantity (RQ) 3.When you check inventory levels? Review Period (P) T RP Q RQ P

54 Total Inventory Quantity Details –Quantity Ordered but not yet Received (COQ) –Current Units in Inventory Data Model 2 nd Pass: Inventory Days RP Units RQ Order Received Current Inventory + COQ Order Placed Current Inventory

55 Data Model 2 nd Pass: Inventory Available Inventory Policies 1.Demand Flow One for One Replenishment 2.R,Q Fixed Reorder Point / Order Quantity 3.S,s Fixed Reorder Point / Order Up To Quantity

56 Data Model 2 nd Pass: Inventory Available Inventory Policies 1.Demand Flow (one for one replenishment) Q T

57 Data Model 2 nd Pass: Inventory Available Inventory Policies 2.R,Q (fixed reorder point, reorder qty) Q T RP RQ

58 Data Model 2 nd Pass: Inventory Available Inventory Policies 3.S,s (Fixed reorder point, order up to point) Q T RP RQ

59 Data Model 2 nd Pass: Inventory Available Inventory Policies 4.S,s Targets Change Reorder Point / Order Up To Qty by period 5.R,Q Targets Change Reorder Point / Order Quantity by period 6.Custom Policy

60 Data Model 2 nd Pass: Inventory Available Inventory Policies 7.DOS Demand Based on Previous Demand DOS Window – Calculate Reorder Point and Order Up To Quantity 8.DOS Forecast Based on Demand Forecast DOS Window – Calculate Reorder point and Order Up To Quantity Planning Lead Time (LT) – Offset Window for Seasonality Time Window LT

61 Data Model 2 nd Pass: Inventory Demand SP IP CZCZDCDCMFGMFG Inventory Walkthrough Review

62 Data Model 2 nd Pass: Inventory Add Inventory Policies to the Guru Model One Inventory Policy is optional for each product at each non-Customer site. Each Inventory Policy defines: Initial Inventory levels Safety/Cycle Stock Levels Associated Costs DCDCMFGMFG Product

63 Data Model 2 nd Pass: Inventory Add Inventory Policies to the Guru Model Open the Inventory Policies Table Add (2) Inventory Policies One for each (non-Customer) Site-Product combination -Sites: MFG, DC -Products: Product -Leave all other fields at default value

64 Data Model 2 nd Pass: Review Demand SP IP SP CZCZDCDCMFGMFG IP SP TP

65 Data Model 2 nd Pass: Transportation Transportation Policies –Required Elements –Source –Destination –Mode –Lane = Collection of Modes between a Source and Destination DCDCCZCZ DC – CZ Lane

66 Transportation Lane Details –Lane Elements: SourceLane QueueModes DestinationMode Rules Shipping ItemsMode Queue Data Model 2 nd Pass: Transportation Lane Queue Mode Rules Mode Queue Mode 1 Mode 2 Modes Shipping Item CZCZ Destination DCDC Source DC – CZ Lane

67 Data Model 2 nd Pass: Transportation Transportation Mode Rules Mode 1 Mode 2 Mode 3 Mode 4 Mode RulesCZCZDCDC DC – CZ Lane

68 Data Model 2 nd Pass: Transportation Transportation Mode Rule Details First – selects the first mode alphabetically First Available Asset – selects the mode with the first asset available By Probability – Chooses mode based on chance/probability On Due Date – Sends shipment on mode if necessary for on time On QTY, Weight, Cubic – lists classes for each mode ( >0), (500- INF->500) Queue Only – just place in queue do not ship Custom Mode Selection

69 Data Model 2 nd Pass: Transportation Transportation Modes

70 Transportation Mode Details Data Model 2 nd Pass: Transportation Full TL Requires Asset, Fill level and Capacity Released from Queue when full LTL Shipped Immediately Periodic Scheduled Shipments Requires Shipment Period Pooled (inbound and Outbound) Multiple Stops/Deliveries (Milk Run) Requires Asset, Fill Level and Capacity Other Parcel, air, rail and ship. Function as LTL If Asset is used, function as Full TL LTLLTL Full TL PeriodicPeriodic PooledPooled CZCZDCDC DC – CZ Lane

71 Transportation Assets –Elements »Name »Number of Units »Fill level (Weight or Cube) »Capacity (Weight or Cube) »Only Released if fill level reached Data Model 2 nd Pass: Transportation LTLLTL Full TL PeriodicPeriodic PooledPooled Mode Asset Required Yes No DCDC CZCZ DC – CZ Lane

72 Data Model 2 nd Pass: Transportation Transportation Costs Applied to each mode 4 ways to Enter Costs Number Step Function Dynamic Rate (Input Pipe) Custom Cost Basis – Qty, Distance, Weight Cubic, etc.

73 Data Model 2 nd Pass: Transportation Transportation Policy Walkthrough 1.Shipping Item Queued at Lane Order gets put into lane queue as a Shipping Item Mode 1 Mode 2 Shipping Item Lane Queue

74 Data Model 2 nd Pass: Transportation Transportation Policy Walkthrough 2.Review Period for Queue Contents of Queue evaluated at Review Period Mode 1 Mode 2 Shipping Item Lane Queue

75 Data Model 2 nd Pass: Transportation Transportation Policy Walkthrough 3.Mode Rule Execution Mode Selected by Mode Rule Shipping Item Sent to Queue at the Mode Mode 1 Mode 2 Shipping Item Lane Queue Mode Rule

76 Data Model 2 nd Pass: Transportation Transportation Policy Walkthrough 4.Mode Behavior Shipping Item Queued at the Mode –LTL - Ship Immediately –Full TL – Wait for Fill Level, then ship Mode 1 Mode 2 Shipping Item Lane Queue Mode Queue Mode Rule

77 Data Model 2 nd Pass: Transportation Transportation Policy Walkthrough 5.Item Shipped Item placed on appropriate mode, released to destination Mode 1 Mode 2 Shipping Item Lane Queue Mode Queue Mode Decision Mode

78 Transportation Walkthrough Review Data Model 2 nd Pass: Transportation Demand SP IP SP CZCZDCDCMFGMFG IP SP TP Mode 1 Mode 2 TP

79 Add Transportation Policies to the Guru Model There is at least one Transportation Policy that applies to a Sourcing Policy which is not “Make” Each Transportation Policy defines a “Flow”: 1.Source Site 2.Destination Site 3.Product (all applicable products if not explicitly entered) 4.Mode (1 if not explicitly entered) Data Model 2 nd Pass: TransportationMFGMFGDCDCCZCZ

80 Add Transportation Policies to the Guru Model Open the Transportation Policies Table Add (2) Transportation Policies One for each Source-Destination combination defined in Sourcing Policies Sources: MFG, DC Destinations: DC, CZ Leave all other fields at default value Data Model 2 nd Pass: Transportation

81 Data Model 2 nd Pass: Review Demand SP IP SP CZCZDCDCMFGMFG IP SP TP Mode 1 Mode 2 TP

82 Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model 2 nd Pass: Policy Detail 4.Data Model 3 rd Pass: Implementation Additional Features Output Analysis

83 We have already created the Basic Structure of our Model »Products »Sites »Demand »Sourcing Policies »Inventory Policies »Transportation Policies Lets try running our model! Data Model 3 rd Pass: Implementation

84 Open the Model Options Simulation Period (Tools -> Model Options (F3)) –Specified by: »Start Date/Time »End Date/Time Data Model 3 rd Pass: Running the Model Start Date/Time End Date/Time

85 Open the Simulation Control Panel –Simulate -> Simulate Supply Chain (F7) Data Model 3 rd Pass: Running the Model Hit Run! Error Check?

86 Data Model 3 rd Pass: Results Analysis Analyzing the Results –Simulation Output Tables Network Summary Site Summary Product Summary Inventory Details Service Details Shipment Transactions

87 Data Model 3 rd Pass: Additional Details Additional Details we will add/change: Inventory »Policies »Costs Transportation »Policies »Costs »Times Sourcing »Policies »Costs

88 Data Model 3 rd Pass: Inventory Open the Inventory Policies Table –Add Policies & Costs DC – Product MFG – Product Policy = R,Q Policy = s,S Reorder Point = 500 Reorder Qty = 1000 Review Period = Daily Initial Inventory = 750 Inbound Cost = 0.5 Inbound Cost = 0.3 Outbound Cost = 0.5 Inbound Cost = 0.3

89 Data Model 3 rd Pass: Transportation Transportation Policy Modification –Open the Demand Table Add An Additional Demand –CZ, Product, 50, 0, 5 DAY, INF, 2 WK –Open the Transportation Policies Table Create an additional DC -> CZ Policy, mode 2 Set the Following: Mode 1Mode 2Mode Rule: On Qty Parameter: 0Parameter:125 Cost: 0.5Cost:0.3

90 Data Model 3 rd Pass: Sourcing Sourcing Policies Modification –Open the Sites Table Add An Additional DC to the sites table –DC_2, location = Dallas, TX, Auto Generate Alternative Sources –Replicate DC inventory, sourcing, and transportation policies for DC_2 –Open the Sourcing Policies Table Modify the sourcing policies for DC and DC_2 –Set both sourcing policies to Multiple Sources(Probability) –Set both parameters to 50 Set the Sourcing Cost of the Make Policy to 1

91 Data Model 3 rd Pass: Results Analysis Analyzing the Results –Simulation Output Tables Network Summary Site Summary Product Summary Inventory Details Service Details Shipment Transactions

92 Final Review Demand SP IP SP CZCZDCDCMFGMFG IP SP TP Mode 1 Mode 2 TP


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