Problem Statement
Consumer goods companies with low margins typically have to manufacture close to demand and maintain plants with interchangeable manufacturing capabilities.
Due to the limitations of their ERP or APS systems, most of these companies plan their networks with rigid allocations, while periodically (e.g. every 3 to 6 months) these allocations could be reviewed and readjusted, to keep service levels to customers high and transportation costs low.
This may be easier said then done, as this exercise would need to take into account at least manufacturing capacity limits, ideally also inbound material flows. Additionally, shift regime plans per manufacturing line and WH handling volumes such plan can provide could be used for tactical capacity planning and/or budgeting purposes.
Solution Statement
With Sophus, an optimization model can deliver all of the above at once. You can thereby use the allocations per time period as input to your ERP / APS systems, to ensure that operational planning and execution adheres to this optimized network plan. Shift plans and warehouse throughputs can guide your workforce planning.
With the flexibility to create such a model at different time horizons and levels of aggregation, similar insights can substantiate your decision-making on supply chain CAPEX budgets in your long-range plans and annual budgets.
