supply chain planning
your inventory levels
Correctly dimensioning the inventory across the network is important in today’s complex supply chains. FrePPLe computes safety stocks and reorder quantities for raw materials, intermediate products and end products.
This helps companies to:
- Reduce the inventory costs
- Prevent stockout situations
- Improve customer service levels
- Eliminate manual processes
Safety stock calculation
Safety stock accounts for supply and demand variability
The safety stock is the lowest level of the point in the inventory saw-tooth profile. It is required to account for the uncertainty during the lead time:
- Uncertainty about the customer demand
- Variable supplier performance
For every buffer, the safety stock level can be defined in one of the following ways:
- Customer service level: FrePPLe will select the most relevant mathematical distribution to calculate a safety stock meeting the service level you want to achieve
- Fixed quantity: The safety stock is not calculated but set to a default value given by the planner
- Periods of cover: The safety stock will be set to the forecasted demand for a given time window
Reorder quantity calculation
Optimize the reordering frequency
How often a replenishment should be ordered from a supplier is a recurrent question for a planner.
FrePPLe can model the batch ordering of parts at any location by calculating the reorder quantity using one of the following methods:
- Economic order quantity: The reorder quantity will be calculated based on the Wilson formula
- Fixed quantity: The reorder will not be calculated but will be set to a default value given by the planner
- Period of cover: The reorder quantity will be set to the forecasted demand for a given time window
Define stocking rules at aggregate level
It is not possible to manage inventory policies (minimim service level, minimum ROQ…) at item-location level for large supply chains. FrePPLe introduces the concept of segments and business rules to apply inventory policies to many item-locations at once.
- Segments are a collection of item-location combinations sharing some properties defined by the planner (E.g: Fast moving items in warehouses).
- Business rules allow the planner to set inventory policies to segments (Minumum service level 95% for fast moving items in warehouses.
Replenishment orders generation
Optimize the replenishment process
FrePPLe will generate replenishment orders for all item-locations in your supply chain to meet the customer demand. These repenishment orders are composed of:
- Purchase orders: Orders to your suppliers with a supplier selection logic applied.
- Distribution orders: Replenishment orders between two locations within your supply chain.
- Rebalancing requests: frePPLe identifies excess inventory and proposes requests to send this excess back to parent location.