One of the most critical tasks for any manufacturing organization is balancing assets (e.g., capacity, materials, people) with demand. Planners must determine how best to meet the demand given (1) available assets, (2) the production and distribution network, and (3) business policies.
Typically, organizations that automate supply planning can achieve a number of key benefits:
- Optimize their profits and margins while meeting the demand
- Reduce overall costs
- Utilize their resources (assets and key raw materials) more effectively
- Be better prepared for the future by considering what-ifs
With three supply planning approaches, Arkieva can help your organization reach these benefits, too. The approaches are:
- Arkieva Rough Cut Capacity Planning (RCCP), a manual, high level model where the planner makes the decision on how to align key assets with the demand. It helps the planner match supply with demand and highlight any imbalances. It is typically done at an aggregate level and in monthly buckets over the medium horizon (6-18 months).
- Arkieva Replenishment Planner, a heuristic-based planning module where the plan is derived by following a sequence of rules. This is the better approach when there are not too many ‘where, when, how’ choices, or for large scale tactical decision making in the medium term (13-26 weeks.)
- Arkieva Supply Planner, an optimization-based planning module which is well suited when there are many supply choices in the system, such as where, when and how to manufacture or how to allocate the limited raw material supply. This variation is typically used in the medium to long term (6 months – 5 years.)
- Balance Supply and Demand
- Outputs include Production, Shipment and Purchase plan
- Materials Requirement Planning (MRP)
- Distribution Requirements Planning (DRP)
- Capacity Requirements Planning (CRP)
- What-if Scenario Analysis
Within each approach there are a number of variations. Determining which approach and which variation works best for a firm at a point in time is always situation specific. Give us a call and let us help you answer these questions for your situation; or schedule a demo from the link below.