Guru Simulation Training. Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model...

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?

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

Data Model 1st Pass: Basic Structure

• Products

• Required Elements

ValuePrice

Weight Cube

Product

• Sites

– Required Elements

– Name – Unique– Location – Lat/Long or Street Address– Type – Customer (Demand Point) or Facility (Hold Inventory)

CZ DC MFG

• Demand

• Site• Product• Time• Quantity

Demand CZ

• Sourcing Policies

– Determines where the order will be sourced from

– Types of Policies• Single Source• Multiple Sources• Make

– Required Elements• Source• Destination• Product• Policy

Single Source

Multiple Sources

• Inventory Policies

– Specifies when and how to replenish inventory

• Site• Product• Policy

• Transportation Policies

• Source• Destination CZ DC

• 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: Review

1. Demand Enters the Network

CZ DC MFGDemand

Customer (CZ) demands for a specific “Product”

Data Model 1st Pass: Walkthrough

2. Customer Source Selection

Demand

CZ chooses appropriate source based on Sourcing PolicyOrder placed at Distribution Center (DC) for quantity of product demanded

CZ DC MFG

3. DC Inventory Review

Demand

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

CZ DC MFG

4. DC Source Selection

Demand

DC has Need for ReplenishmentDC chooses appropriate source (sourcing policy), creates order at

Manufacturer (MFG)

CZ DC MFG

6. MFG Inventory Review

Demand

Inventory Sufficient to fill order – Create replenishment order

CZ DC MFG

8. MFG Source Selection

Demand

MFG has Need for ReplenishmentSince the MFG has a “Make” sourcing policy, it creates production order

CZ DC MFG

9. MFG Delivery to Customer through DC

Production Complete, Shipping Item Created at MFGShip Quantity to CZ through DC by specified transportation policies

Order Complete

Demand

CZ DC MFG

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 Sat1 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

– Demand from CZ -> 10/2/07 at 4:00 pm -> Order by CZ

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

CZ Demand / Order Gen.

– 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

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

DC Inventory Check / Order Gen.

– 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

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

MFG Inventory Check / Order Gen.

– 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

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

Production at MFG

– 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

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

Production at MFG

Shipment Leaves MFG

– 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

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

Production at MFG

Shipment Leaves MFG

Shipment Arrives at DC

– 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

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

Production at MFG

Shipment Leaves MFG

Shipment Leaves DC

– 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

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

Production at MFG

Shipment Leaves MFG

Shipment Leaves DC Shipment

Arrives at CZ

Data Model 1st Pass: Model Creation

• Open Supply Chain Guru

• Add a New Model

– Go to File Add A New Model

• Save the Model in Training Folder– C://Llamasoft/Training

– Save Model As:• Sim_Training_Basic

– Save Project As:• Guru_Training

• Network Simulation Inputs

• Sites, Products, Demand

• Sourcing Polices

• The Model we will Build

• 3 Sites

• 1 Product

Product

Demand

CZ DC MFG

Data Model 1st Pass: Products

• Add Products to the Guru Model

• Name/SKU• Inventory Valuation• Price• Weight, Cubic• Status

Product

• Add Products to the Guru Model

• Open the Products Table• Add a Product with the following information:

Data Model 1st Pass: Products

Name: ProductValue: 5Price: 10Weight: 5Cubic: 5Type: DiscreteStatus: Include

Data Model 1st 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 Cost

MFGDCCZ

• Open the Sites Table

1. Add Customer Site:

– Name: CZ– City: New York– State: New York– Type: Customer– Graphic: Circle– Graphic Color: Green

2. Add Distribution Center:

– Name: DC– City: Omaha– State: Nebraska– Type: Existing Facility– Graphic: Triangle– Graphic Color: Yellow

3. Add Manufacturer:

– Name: MFG– City: Los Angeles– State: California– Type: Existing Facility– Graphic: Square– Graphic Color: Red

• Display the Sites on the Map

Data Model 1st Pass: Demand

• Add Demand to the Guru Model

- Customer Site - Time Between Orders

- Product - Due Date

- Quantity - Unit Price

- Occurrences

CZDemand In

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

Demand

CZ DC MFG

Agenda

1. Introduction

3. Data Model 2nd Pass: Policy Detail • Sourcing Policies• Inventory Policies• Transportation Policies

Data Model 2nd Pass: Sourcing

• Sourcing Policies

– Basic Types

• Upstream Replenishment– Single Source– Multiple Sources

• Self Replenishment– Make

• Source• Destination• Product• Policy Type

Single Source

Multiple Sources

• 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

Demand

CZ DC MFG

• Sourcing Walkthrough Review

• Add Sourcing Policies to the Guru Model

– For each Site/Product pair, define a Sourcing Policy linking the source to the destination site

MFGCZ DCProduct Product

• 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

• Display the Sourcing Policies on the Map

Data Model 2nd Pass: Review

Demand

CZ DC MFG

Data Model 2nd Pass: Inventory

• Required Elements

» Site» Product» Policy Type DC

• 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)

• Total Inventory Quantity Details

– Quantity Ordered but not yet Received (COQ)– Current Units in Inventory

Order Received

Current Inventory

Order Placed

Current 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

1. Demand Flow (one for one replenishment)

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

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

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

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

Time WindowLT

Demand

CZ DC MFG

• Inventory Walkthrough Review

• 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

Product Product

• 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

Demand

CZ DC MFG

Data Model 2nd Pass: Transportation

– Source– Destination– Mode

– Lane = Collection of Modes between a Source and Destination

DC – CZ Lane

• Transportation Lane Details

– Lane Elements:Source Lane Queue Modes

Destination Mode Rules

Shipping Items Mode Queue

Lane Queue

ModeRules

Mode Queue

Mode 1

Mode 2

ModesShipping Item

Destination

Source

DC – CZ Lane

• Transportation Mode Rules

Mode 1

Mode 2

Mode 3

Mode 4

Mode Rules

DC – CZ Lane

• 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 ->0), (500-INF->500)• Queue Only – just place in queue do not ship• Custom Mode Selection

Mode 1

Mode 2

Mode 3

Mode 4

DC – CZ Lane

• Transportation Modes

Full TL

Periodic

Pooled

DC – CZ Lane

• Transportation Mode Details

• 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

Full TL

Periodic

Pooled

DC – CZ Lane

• Transportation Assets

– Elements» Name» Number of Units» Fill level (Weight or Cube)» Capacity (Weight or Cube)» Only Released if fill level reached

Full TL

Periodic

Pooled

ModeAsset

Required

DC – CZ Lane

• 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.

• 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

2. Review Period for Queue

• Contents of Queue evaluated at Review Period

Mode 1

Mode 2

Shipping Item

Lane Queue

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

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

ModeRule

5. Item Shipped

• Item placed on appropriate mode, released to destination

Mode 1

Mode 2

Shipping Item

Lane Queue

Mode Queue

ModeDecision

• Transportation Walkthrough Review

Demand

CZ DC MFG

Mode 1

Mode 2

• 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 Site2. Destination Site3. Product (all applicable products if not explicitly entered)4. Mode (1 if not explicitly entered)

MFGDCCZ

• 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

Demand

CZ DC MFG

Mode 1

Mode 2

Agenda

1. Introduction

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

• 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: Implementation

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

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

Data Model 3rd Pass: Running the Model

Start Date/Time

End Date/Time

• Open the Simulation Control Panel– Simulate -> Simulate Supply Chain (F7)

Data Model 3rd Pass: Running the Model

Hit Run!

Error Check?

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

Demand

CZ DC MFG

Mode 1

Mode 2

Guru Simulation Training. Agenda 1.Introduction 2.Data Model 1 st Pass: Basic Structure 3.Data Model...

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