Guru Simulation Training

Agenda

1. Introduction

2. Data Model 1st Pass: Basic Structure

3. Data Model 2nd Pass: Policy Detail

4. Data Model 3rd Pass: Implementation

Agenda

1. Introduction
• What are we going to Cover?

2. Data Model 1st Pass: Basic Structure

3. Data Model 2nd Pass: Policy Detail

4. Data Model 3rd Pass: Implementation

Introduction to the Data Model

1. Data Model 1st Pass: High Level Structure

• 30,000 Ft view
• Basic structural pieces

2. Data Model 2nd Pass: Policy Detail

• 15,000 Ft view
• Integrate details about inventory, sourcing and transportation
policies

3. Data Model 3rd Pass: Implementation

• 1000 Ft view
• How are the Guru Tables used to create a model
Agenda

1. Introduction

2. Data Model 1st Pass: Basic Structure

• Basic Structural Elements
• Walkthrough of Events

3. Data Model 2nd Pass: Policy Detail

4. Data Model 3rd Pass: Implementation

Data Model 1st Pass: Basic Structure

• Products

• Required Elements

Name

Price Value
Product

Weight Cube
Data Model 1st Pass: Basic Structure

• Sites

CZ
CZ DC
DC MFG
MFG

– Required Elements

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

• Demand

– Required Elements

Demand CZ
CZ
• Site
• Product
• Time
• Quantity
Data Model 1st Pass: Basic Structure

Single Source
• Sourcing Policies
CZ DC
– Determines where the order
will be sourced from
Multiple Sources

– Types of Policies DC1

• Single Source
• Multiple Sources
• Make CZ

DC2
– Required Elements
• Source
• Destination Make
• Product
• Policy
MFG
Data Model 1st Pass: Basic Structure

• Inventory Policies

– Specifies when and how to IP

replenish inventory

– Required Elements
DC
DC
• Site
• Product
• Policy
Data Model 1st Pass: Basic Structure

• Transportation Policies

– Required Elements

• Source
• Destination CZ
CZ DC
DC
Data Model 1st Pass: Review

• 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 1st Pass: Walkthrough

1. Demand Enters the Network

Demand CZ
CZ DC
DC MFG
MFG

Customer (CZ) demands for a specific “Product”

Data Model 1st Pass: Walkthrough

2. Customer Source Selection

SP

Demand CZ
CZ DC
DC MFG
MFG

CZ chooses appropriate source based on Sourcing Policy

Order placed at Distribution Center (DC) for quantity of product demanded
Data Model 1st Pass: Walkthrough

3. DC Inventory Review
IP
SP

Demand CZ
CZ DC
DC MFG
MFG

Not enough inventory at the DC to fill the order – The DC places a

replenishment order
Data Model 1st Pass: Walkthrough

4. DC Source Selection
IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG

DC has Need for Replenishment

DC chooses appropriate source (sourcing policy), creates order at
Manufacturer (MFG)
Data Model 1st Pass: Walkthrough

6. MFG Inventory Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG

Inventory Sufficient to fill order – Create replenishment order

Data Model 1st Pass: Walkthrough

8. MFG Source Selection

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

MFG has Need for Replenishment

Since the MFG has a “Make” sourcing policy, it creates production order
Data Model 1st Pass: Walkthrough

9. MFG Delivery to Customer through DC

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP
Production Complete, Shipping Item Created at MFG
Ship Quantity to CZ through DC by specified transportation policies
Order Complete
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

Sun Mon Tue Wed Thu Fri Sat

1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31
 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

CZ Demand /
Order Gen. Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6

7 8 9 10 11 12 13

14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
14 15 16 17 18 19 20

21 22 23 24 25 26 27

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
14 15 16 17 18 19 20
Production
21 22 23 24 25 26 27 at MFG

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
Shipment
Leaves MFG MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
14 15 16 17 18 19 20
Production
21 22 23 24 25 26 27 at MFG

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
Shipment
Leaves MFG MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
Shipment 14 15 16 17 18 19 20
Arrives at DC Production
21 22 23 24 25 26 27 at MFG

28 29 30 31
 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

CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
Shipment
Leaves MFG MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
Shipment 14 15 16 17 18 19 20
Arrives at DC Production
21 22 23 24 25 26 27 at MFG
Shipment
Leaves DC 28 29 30 31
 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
CZ
DC Inventory
Demand / Sun Mon Tue Wed Thu Fri Sat Check / Order
Order Gen.
Gen.
1 2 3 4 5 6
Shipment
Leaves MFG MFG Inventory
7 8 9 10 11 12 13
Check / Order
Gen.
Shipment 14 15 16 17 18 19 20
Arrives at DC Production
21 22 23 24 25 26 27 at MFG
Shipment
Leaves DC 28 29 30 31 Shipment
Arrives at CZ
Data Model 1st Pass: Model Creation

• Open Supply Chain Guru

Data Model 1st Pass: Model Creation

• Add a New Model

– Go to File  Add A New Model

Data Model 1st Pass: Model Creation

• Save the Model in Training Folder

– C://Llamasoft/Training

– Save Model As:

• Sim_Training_Basic

– Save Project As:

• Guru_Training
Data Model 1st Pass: Model Creation

• Network Simulation Inputs

• Sites, Products, Demand

• Sourcing Polices

• Inventory Policies

• Transportation Policies
Data Model 1st Pass: Model Creation

• The Model we will Build

IP IP
SP SP
• 3 Sites

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP

Product
Product

• 1 Product
Data Model 1st Pass: Products

• Add Products to the Guru Model

Product
Product

• Name/SKU
• Inventory Valuation
• Price
• Weight, Cubic
• Status
Data Model 1st Pass: Products

• Add Products to the Guru Model

• Open the Products Table

• Add a Product with the following information:

Name: Product
Value: 5
Price: 10
Weight: 5
Cubic: 5
Type: Discrete
Status: Include
Data Model 1st Pass: Sites

• Add Sites to the Guru Model

CZ
CZ DC
DC MFG
MFG

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

• Open the Sites Table

1. Add Customer Site:

– Name: CZ
– City: New York
– State: New York
– Type: Customer
– Graphic: Circle
– Graphic Color: Green
Data Model 1st Pass: Sites

2. Add Distribution Center:

– Name: DC
– City: Omaha
– State: Nebraska
– Type: Existing Facility
– Graphic: Triangle
– Graphic Color: Yellow
Data Model 1st Pass: Sites

3. Add Manufacturer:

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

• Display the Sites on the Map

Data Model 1st Pass: Demand

• Add Demand to the Guru Model

Demand In CZ
CZ

- Customer Site - Time Between Orders

- Product - Due Date
- Quantity - Unit Price
- Occurrences
Data Model 1st Pass: Demand

• Add Demand to the Guru Model

– Open the Demand Table

– Add (1) Demand Record with the following information:

Customer: CZ Due Date: 5 Day

Product: Product Occurrences: INF
Quantity: 100 Time Between Orders: 1 WK
Order Time: 0
Data Model 1st Pass: Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP
Agenda

1. Introduction

2. Data Model 1st Pass: Basic Structure

3. Data Model 2nd Pass: Policy Detail

• Sourcing Policies
• Inventory Policies
• Transportation Policies

4. Data Model 3rd Pass: Implementation

Data Model 2nd Pass: Sourcing

• Sourcing Policies Single Source

– Basic Types CZ DC

• Upstream Replenishment
– Single Source
– Multiple Sources Multiple Sources

• Self Replenishment DC1

– Make

– Required Elements CZ

DC2
• Source
• Destination
Make
• Product
• Policy Type
MFG
Data Model 2nd 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
Data Model 2nd Pass: Sourcing

• Sourcing Walkthrough Review

SP

Demand CZ
CZ DC
DC MFG
MFG
Data Model 2nd Pass: Sourcing

• Add Sourcing Policies to the Guru Model

Product Product
CZ
CZ DC
DC MFG
MFG

– For each Site/Product pair, define a Sourcing Policy linking the

source to the destination site
Data Model 2nd Pass: Sourcing

• Add Sourcing Policies to the Guru Model

– 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
Data Model 2nd Pass: Sourcing

• Display the Sourcing Policies on the Map

Data Model 2nd Pass: Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP
Data Model 2nd Pass: Inventory

• Inventory Policies

IP
• Required Elements

» Site
» Product
» Policy Type DC
DC
Data Model 2nd 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) Q

RQ

2. Amount of which you order?

RP
• Reorder Quantity /
Order Up To Quantity (RQ)
T

P
3. When you check inventory levels?
Data Model 2nd Pass: Inventory

• Total Inventory Quantity Details

– Quantity Ordered but not yet Received (COQ)

– Current Units in Inventory Current
Units Inventory
+
RQ COQ
Order
Placed
RP
Order
Current
Received
Inventory

Days
Data Model 2nd 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
Data Model 2nd Pass: Inventory

• Available Inventory Policies

1. Demand Flow (one for one replenishment)

T
Data Model 2nd Pass: Inventory

• Available Inventory Policies

2. R,Q (fixed reorder point, reorder qty)

RQ

RP

T
Data Model 2nd Pass: Inventory

• Available Inventory Policies

3. S,s (Fixed reorder point, order up to point)

Q
RQ

RP

T
Data Model 2nd 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
Data Model 2nd Pass: Inventory

• Available Inventory Policies

7. DOS Demand
• Based on Previous Demand
• DOS Window – Calculate Reorder Point and Order Up To Quantity

Time Window

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

LT Time Window
Data Model 2nd Pass: Inventory

• Inventory Walkthrough Review

IP
SP

Demand CZ
CZ DC
DC MFG
MFG
Data Model 2nd Pass: Inventory

• Add Inventory Policies to the Guru Model

Product Product

MFG
MFG DC
DC

• One Inventory Policy is optional for each product at each

non-Customer site.
• Each Inventory Policy defines:

• Initial Inventory levels

Data Model 2nd 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
Data Model 2nd Pass: Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP
Data Model 2nd Pass: Transportation

• Transportation Policies

– Required Elements DC – CZ Lane

– Source
– Destination
– Mode DC
DC CZ
CZ

– Lane = Collection of Modes between a Source and Destination

 Data Model 2nd Pass: Transportation

• Transportation Lane Details

DC – CZ Lane
Mode 1
DC
DC CZ
CZ
Mode
Mode 22

Source Shipping Lane Mode Mode Modes Destination

Item Queue Rules Queue
– Lane Elements:
Source Lane Queue Modes
Destination Mode Rules
Shipping Items Mode Queue
Data Model 2nd Pass: Transportation

• Transportation Mode Rules

Mode
Rules
DC – CZ Lane

Mode 1

Mode
Mode 22
DC
DC CZ
CZ
Mode
Mode 33

Mode
Mode 44
Data Model 2nd Pass: Transportation

• Transportation Mode Rule Details

DC – CZ Lane

Mode 1
Mode
Mode 22
DC
DC CZ
CZ
Mode
Mode 33
Mode
Mode 44

• 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 ->0), (500-INF->500)
• Queue Only – just place in queue do not ship
• Custom Mode Selection
Data Model 2nd Pass: Transportation

• Transportation Modes

Modes
DC – CZ Lane

LTL

Full
Full TL
TL
DC
DC CZ
CZ
Periodic
Periodic

Pooled
Pooled
Data Model 2nd Pass: Transportation

• Transportation Mode Details

DC – CZ Lane

LTL
Full
Full TL
TL
DC
DC CZ
CZ
Periodic
Periodic
Pooled
Pooled

• Full TL • Pooled (inbound and Outbound)

• Requires Asset, Fill level and Capacity • Multiple Stops/Deliveries (Milk Run)
• Released from Queue when full • Requires Asset, Fill Level and Capacity
• LTL • Other
• Shipped Immediately • Parcel, air, rail and ship.
• Periodic • Function as LTL
• Scheduled Shipments • If Asset is used, function as Full TL
• Requires Shipment Period
Data Model 2nd Pass: Transportation

• Transportation Assets Asset

DC – CZ Lane Mode Required

LTL No

Full
Full TL
TL Yes
DC
DC CZ
CZ
Periodic
Periodic No

Pooled
Pooled Yes

– Elements
» Name
» Number of Units
» Fill level (Weight or Cube)
Data Model 2nd 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.
Data Model 2nd Pass: Transportation

• Transportation Policy Walkthrough

Shipping Item Mode 1

Lane Mode
Mode 22
Queue

1. Shipping Item Queued at Lane

• Order gets put into lane queue as a Shipping Item

Data Model 2nd Pass: Transportation

• Transportation Policy Walkthrough

Shipping Item Mode 1

Lane Mode
Mode 22
Queue

2. Review Period for Queue

• Contents of Queue evaluated at Review Period

Data Model 2nd Pass: Transportation

• Transportation Policy Walkthrough

Shipping Item
Mode 1

Lane Mode
Mode 22
Queue Mode
Rule

3. Mode Rule Execution

• Mode Selected by Mode Rule

• Shipping Item Sent to Queue at the Mode
Data Model 2nd Pass: Transportation

• Transportation Policy Walkthrough

Shipping Item

Mode 1

Lane Mode
Mode 22
Queue Mode
Rule Mode
Queue

4. Mode Behavior

• Shipping Item Queued at the Mode

– LTL - Ship Immediately
– Full TL – Wait for Fill Level, then ship
Data Model 2nd Pass: Transportation

• Transportation Policy Walkthrough

Shipping Item

Mode 1

Mode
Lane Mode
Mode 22
Queue Mode
Decision Mode
Queue

5. Item Shipped

• Item placed on appropriate mode, released to destination

Data Model 2nd Pass: Transportation

• Transportation Walkthrough Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP

Mode 1

Mode
Mode 22
Data Model 2nd Pass: Transportation

• Add Transportation Policies to the Guru Model

CZ
CZ DC
DC MFG
MFG

• 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 2nd Pass: Transportation

• 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 2nd Pass: Review

IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP

Mode 1

Mode
Mode 22
Agenda

1. Introduction

2. Data Model 1st Pass: Basic Structure

3. Data Model 2nd Pass: Policy Detail

4. Data Model 3rd Pass: Implementation

• Additional Features
• Output Analysis
Data Model 3rd Pass: Implementation

• 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 3rd Pass: Running the Model

• Open the Model Options

• Simulation Period (Tools -> Model Options (F3))

– Specified by:
» Start Date/Time
» End Date/Time

Start Date/Time

End Date/Time
Data Model 3rd Pass: Running the Model

• Open the Simulation Control Panel

– Simulate -> Simulate Supply Chain (F7)

Error
Check?

Hit Run!
Data Model 3rd Pass: Results Analysis

• Analyzing the Results

– Simulation Output Tables

• Network Summary
• Site Summary
• Product Summary
• Inventory Details
• Service Details
• Shipment Transactions
Data Model 3rd Pass: Additional Details

• Additional Details we will add/change:

• Inventory
» Policies
» Costs

• Transportation
» Policies
» Costs
» Times

• Sourcing
» Policies
» Costs
Data Model 3rd Pass: Inventory

• Open the Inventory Policies Table

– Add Policies & Costs

DC – Product MFG – Product

Policy = R,Q Policy = s,S
Reorder Point = 500 Reorder Point = 500
Reorder Qty = 1000 Reorder Qty = 1000
Review Period = Daily Review Period = Daily
Initial Inventory = 750 Initial Inventory = 750
Inbound Cost = 0.5 Inbound Cost = 0.3
Outbound Cost = 0.5 Inbound Cost = 0.3
Data Model 3rd 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 1 Mode 2
Mode Rule: On Qty Mode Rule: On Qty
Parameter: 0 Parameter:125
Cost: 0.5 Cost:0.3
Data Model 3rd Pass: Sourcing

• Sourcing Policies Modification

– Open the Sites Table

• Add An Additional DC to the sites table
– DC_2, location = Dallas, TX, 75201
• 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
Data Model 3rd Pass: Results Analysis

• Analyzing the Results

– Simulation Output Tables

• Network Summary
• Site Summary
• Product Summary
• Inventory Details
• Service Details
• Shipment Transactions
Final Review
IP IP
SP SP

Demand CZ
CZ DC
DC MFG
MFG SP

TP TP

Mode 1

Mode
Mode 22