Powering IBP with Modeling and Optimization

© AIMMS - 2015 Do not copy, cite, or distribute without permission

Webinar 2:Powering IBP with Modelling & OptimizationGet inspired how optimization enhances yourS&OP / IBP experience

© AIMMS - 2015 Do not copy, cite, or distribute without permission© AIMMS - 2015 Do not copy, cite, or distribute without permission

About Marcel Mourits

> MsC in Mechanical Engineering

> PhD in Supply Chain Network Design

& Operations Research

> 10 years with Logistics Service

Providers and Retails

> 6 years in SC & Manufacturing

Business Consulting

> 3 years with AIMMS

Passion for improving decision making


AIMMS…

… offers a new approach to solve critical business problems in typically four months with our breakthrough technology.


Optimization finds you the “Best Set of Actions”

AIMMS helps you find the ‘Best Set of Actions’ to improve the situation

The Power of Optimization!

> generate multiple sets of actions for various scenarios

> evaluate performance, sensitivity, robustness

> always the best fit answer to your requirements and objectives

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IBP / S&OP Optimization; Examples

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Our clients in Supply ChainOptimization & IBP

1990 1995 2000 2005 2010 2015


S&OP and IBP

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next wee

k

next quarter

6 months

1 year

2 year

s

5 year

s


Why powering IBP with Modelling & Optimization?


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Why powering IBP with Modelling & Optimization?

Taking S&OPtothenextlevelwith Optimization


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• Worldleaderinmeat processing• From fieldto retail shelf• 5industry standardprocess steps• 54processingplants inBrazil

• Worldleaderinmeat processing• From fieldto retail shelf• 5industry standardprocess steps• 54processingplants inBrazil

Case in point:


Celso BatistaJBS

Lead Global Planner

presenting

@

DallasSC & Logistics

Conference 2014

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DISSASEMBLY SUPPLYCHAIN

q 80PRIMALS,160SUB-PRIMALS,2.000SKUs§ Yield§ Shelf Life§Maturation§ Raw materialrequirements§ Production requirements

q 50+PRODUCTIONPLANTS§ Certifications§ Capacities§ Cattle availability§ Costs

q 12+DISTRIBUTIONCENTERS

q 170MAINDOMESTICDESTINATIONS

q 100EXPORTCOUNTRIES

JBSSUPPLYMODEL QUESTIONMARKS

PROPOSEDSOLUTION

CAPTUREDGAINS

PROJECTSYNERGIES

Picturefrom:UltimateBeef (http://ultimatebeef.co.za)


PROPOSEDSOLUTION

CAPTUREDGAINS

PROJECTSYNERGIES

GENERALBUSINESSDAY-TO-DAYQUESTIONS

•Arewemissing demandopportunities?•Areweincreasinginventory?

PULLEDXPUSHEDPRODUCTION

•Arewemaximizingtheutilizationofourproductionbottle-necks?•Arewemeasuringthosecorrectly?

BOTTLE-NECKS

•Areweallocatingcontractsrespectingallthetransportationimplications?•Areweminimizingfreight?Areweminimizingtaxes?

SHIPPINGCOSTS

• Isthisthebestmixofproductiontomaximizetherevenue?PRODUCTIONTRADE-OFFS

•Givenagroupofpremises,whatkindoffinancial resultshouldweexpect?• ShouldIkeepvolumeasinitialplanned? Should Iincreaseit?ShouldIdecreaseit?

FINANCIALPROJECTIONS

•Arewe going tofill our firmed demands fornextweek?How my OTIFwill end up being?•Which products doIneed toconsider aspriorities fornext week?And fortomorrow?

SERVICELEVEL

MATHEMATICALAPPROACH

OPERATIONALRESEARCHüMaximizerevenueü Considerbusiness limitations/restrictions

OUTPUTSü Cattleprocurementplanü Boneinmeatdecisions(Sell?Transfer?Debone?)ü Production Planü SalesPlanü Financialresultsprojection


PROPOSEDSOLUTION

CAPTUREDGAINS

PROJECTSYNERGIES


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IBP – Optimization;

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Evolution of Marketing & Sales Planning

© Oliver Wight International 1

OPTIMISATION

PREDICTIVE MODELLING

MODELLING PARAMETERS PLANS

STATISTICAL MODELLING

ANALYTICSASSUMPTIONS PLANS

INTEGRATED ANALYTICS

How to get there?


Demand Plan Optimization

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Demand Driven Production Scheduling

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Optimal Scenario Generation

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What sort(s) of IBP do you have?

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Commodities

Demanddriven

Globalalignment

Lowmaturity

Converging SC

Stableportfolio

Stable demand

Speculative pricing

Specialtyproducts

Supplydriven

Localforlocal

High maturity

DivergingSC

RapidNPI

Volatiledemand

Stablepricing


General S&OP - IBP Optimization Platform

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Commodities

Demanddriven

Globalalignment

Lowmaturity

Converging SC

Stableportfolio

Stable demand

Speculative pricing

Specialtyproducts

Supplydriven

Localforlocal

High maturity

DivergingSC

RapidNPI

Volatiledemand

Stablepricing


Working with Issue Resolvers

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Like to experience for yourself?

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“I’mamazed;Iknowofnoothervendor thatbuildsMYapplicationontheflyinatwo

dayworkshop!“


Next Webinars in this series

For more information refer to: [email protected]

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Powering IBP with Modeling and Optimization

Software