In the Optimize Inventory section of the Help Menu, the user will learn how to build, verify, analyze and optimize a stock model.
Stock models analyze current inventory policies and provide optimal inventory policies given the nature of product demand and the characteristics of the supply chain.
Minimum Data Required for a Stock Model
Please refer to the Model Production Systems section for a complete description of model inputs.
Information Needed
To model a stock, the following guide can be used to collect all relevant information.
| Data | Information Needed |
|---|---|
| Scope Definition | What are the supply production systems for the chosen modeling scope? What are the desired outcomes of modeling the proposed supply production systems? |
| Demand | List of items to be stocked in a stock point Weekly demand of stocked items For unknown demand, the user can estimate it with a forecast or, in the case of a project production system, the user can use following information to estimate it: Bill of materials (BOM) and material take offs or quantity estimates for stocked items Project schedule Use BOM and schedule to calculate weekly demand (e.g., units per time over the schedule duration) |
| Inventory | How and in what quantities of raw materials and finished goods are currently stocked? Are there multiple stocking locations and if so, where and in what quantities? Reorder policies (reorder point, reorder quantity) for purchased items |
| Supply | Average and variance of supplier lead times |