on 04-03-2019 8:37 PM
Hi experts, I have a conceptual question:
I would like to know how inventory optimization consider the transport lead time to each customer and the respective CV if it works with customer groups?
Thanks,
Héctor
Hello Hector,
IO forecast is placed at customer facing plant and not only at customer level. This should have already considered customer lead time, if any, when demand is placed at the corresponding plant. IO engine considers this demand and its variability along with transportation lead time for the location to generate the recommended safety stock.
Thanks,
Rohit
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Hi,
Purchase and transportation parameters control material movements from one location to another in the supply chain network. Information is used for these parameters through the key figures defined at the week/product/ location/location-from planning level. Hence, the input to the inventory optimization algorithm is for a product at a location that is being supplied by another internal (plant, distribution center, warehouse, etc.) or external (supplier) location.
The purchase and transportation key figures used as input to the inventory optimization algorithm are as follows:
Best Regards,
Lingaiah
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