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Manugistics NetWORKS Manugistics NetWORKS Strategy 6.2Strategy 6.2

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Introduction Introduction

A strategic decision support toolPermits benchmarking and “optimization”

of existing and prospective supply chainsSupport for network design, network

utilization, and resource utilization analyses

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Introduction (continued)Introduction (continued)

Net WORKS Strategy is a module in a suite of enterprise profit optimization products from Manugistics.

The software employs proprietary database structures and tools to interact with the databases.

Other Manugistics modules are

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Other Manugistics ProductsOther Manugistics Products

NetWORKS DemandNetWORKS FulfillmentNetWORKS ProcurementNetWORKS TransportNetWORKS CollaborateNetWORKS Sequencing

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Software Architecture and Software Architecture and StructureStructure NetWORKS Strategy 6.2 uses a Server – Client

Networked Architecture– Fat Server

Stores object oriented databases Runs the model processes Manages the Manugistics domains

– Thin clients Interacts with data objects Initiates model processes Displays outputs of Optimizer output

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NetWORKS Strategy 7.0NetWORKS Strategy 7.0

Scheduled for release fall ’02.Transitioning to a Fat Client – Thin Server

Web Enabled Architecture in Version 7.0 scheduled for release later this year.

The new version will use relational databases rather than proprietary object oriented databases.

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Currently Supported Operating Currently Supported Operating Systems and PlatformsSystems and PlatformsServer

– Unix– Windows NT, Windows 2000 Professional

Clients– Unix based– Windows 98, Windows NT, Windows 2000

Professional, Windows XP(?)

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Fundamental Tasks We Will Fundamental Tasks We Will CoverCoverInstalling the serverInstalling the clientAdministering the systemScoping an analysisInputting data and relationshipsTroubleshootingAnalyzing and generating reportsInterpreting reports

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““Optimizing” the Supply ChainOptimizing” the Supply Chain

Optimizing - Achieving the best possible solution to a problem in terms of a specified objective function subject to model inputs.

The objective function can either be profit maximization or cost minimization.

Optimum is defined subject to a set of constraints and the input data.

LP or MIP solutions to the Optimization problem.

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Revenues and Costs DataRevenues and Costs Data

Selling pricesPurchase costs of raw materialsTransportation CostsManufacturing CostsStorage CostsResource CostsTaxes/ TariffsStock out Costs

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ConstraintsConstraints

Manufacturing capacityStorage SpaceTransportation and handling capacityThroughput capacityInventory levelsSourcing restrictionsPre-build limitations

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Why a Model?Why a Model?

Across an enterprise the number of possible solutions is extremely large.

An automated, systematic tool that seeks the best solution is valuable in supporting the decision making process.

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Optimization Example, LPOptimization Example, LP

Profit: Guns = $2 per unit, Butter = $1 per unit 2100 units of raw material available

– Butter requires 3 units, guns require 7 units per unit produced

2400 units of machine time available– Butter requires 8 units, guns require 3 units per unit

produced 400 units of labor available

– Guns and butter require 1 unit each to produce

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Optimization Example, MIPOptimization Example, MIP

Suppose that we can construct one or two plants to make guns and or butter and that each plant has a unique set of labor, machinery, and raw materials constraints.

Further suppose that each plant sells their output into markets with different output prices and service requirements.

Requires MIP as some decision variables are discreet.

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Real World ExampleReal World Example

Monsanto Corporation1000’s of products, 1000’s of resources,

hundreds of suppliers, thousands of customers, world-wide distribution.

Millions of constraints.Need a model. Need a reliable, automated

technique to solve the model.

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Class ResourcesClass Resources

Installation/Administration ManualReference ManualClassroom Guide

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Using NetWORKS 6.2Using NetWORKS 6.2

Invest some time in scoping out your analysis.

Include just enough detail necessary to answer the questions being asked of you.

Do not let the scope of your analysis expand.

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Supply Chain Model Flow ChartSupply Chain Model Flow Chart

Define Problem, Objective, and Scope Create Calendars Create Items Create Locations Create Lanes Create Resources Create SKUs Create and Edit Processes Enter Costs, Prices, and Constraints

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Supply Chain Model Flow ChartSupply Chain Model Flow Chart

Create a Scenario for AnalysisRun the OptimizerReview the ExceptionsReview the SolutionCreate a new analytical scenarioRun the OptimizerReview the Exceptions and SolutionCompare the Scenario Solutions

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Manugistics ExplorerManugistics Explorer