powering ibp with modeling and optimization
TRANSCRIPT
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Webinar 2:Powering IBP with Modelling & OptimizationGet inspired how optimization enhances yourS&OP / IBP experience
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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 - 2015 Do not copy, cite, or distribute without permission
AIMMS…
… offers a new approach to solve critical business problems in typically four months with our breakthrough technology.
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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
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S&OP and IBP
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next wee
k
next quarter
6 months
1 year
2 year
s
5 year
s
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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:
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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)
JBSSUPPLYMODEL QUESTIONMARKS
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
JBSSUPPLYMODEL QUESTIONMARKS
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?
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Demand Driven Production Scheduling
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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
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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
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Like to experience for yourself?
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“I’mamazed;Iknowofnoothervendor thatbuildsMYapplicationontheflyinatwo
dayworkshop!“
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Next Webinars in this series
For more information refer to: [email protected]
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