General Purpose Supply Chain Model

Built for Carrier (India)

Purpose:
To make the customer better enabled to schedule future inventories of raw materials and finished goods at their manufacturing plant and distribution centers.

Assumptions:
The following simplifying assumptions were made prior to and during the construction of the model. These assumptions were made to simplify the model in areas where more detail would not have been advantageous and/or cost effective to model. It is important that any user of the model be aware of these assumptions as they may affect the data that is output by the model. Sundays o No work will be done by the manufacturing plants or distribution centers on Sundays o Transportation of raw materials and finished goods will occur on Sundays Orders are placed by the DCs at the beginning of each week Finished goods are shipped at the beginning of each day and arrive at the beginning of the day specified by the lead time o For example if a part has a lead time of 4 days it might ship on Monday at the end of the day and arrive at the beginning of day on Friday Finished goods are built at the end of each day One year is 364 days this evenly divides into 52 weeks

Goals:
The model is designed to achieve the following goals: To allow the customer to calculate an expected service level based on user specified safety stock percents and forecasted sales data To allow the customer to calculate the expected inventory levels at the manufacturing plant and DCs based on the user specified lead times, build time, safety stock percents, and forecasted sales data

Inputs:
To run the model the customer will be required to input the following information into the model: Information supplied through Excel o Actual Sales Data Only if the model is going to be driven by the actual sales data Required for each DC This table contains the number of each type of finished good that was sold each day of the year

o Weekly Minimum and Maximum Sales Forecasts - Only if the model is going to be driven by random data Required for each DC This table specifies the minimum and maximum number of each type of finished good that can be sold during any given week o Weekly Forecasted Sales Required for each DC This table specifies the forecasted number of each finished good that will be sold o Bill of Materials (BOM) Contains all of the required materials for each finished good part This table contains the number of each raw material that is required to build each type of finished good o Raw Materials Lead Time Required for each Manufacturing Plant This table specifies the lead times for each type of raw material o Finished Goods Lead Time Required for each Manufacturing Plant This table specifies the lead times for each type of finished good Information entered directly into Flexsim o Safety Stock Required for all inventory at the Manufacturing Plants and DCs This table specifies the percent above the forecasted sales that the DC should keep in inventory o Suppliers Required for all finished goods at each DC This table specifies what incoming Manufacturing plant supplies what part o Build Time Required for each Manufacturing Plant This number is the number of days required to build any finished good o Maximum Build Required for each Manufacturing Plant This table specifies the maximum number of each type of finished good that can be built in one day o Over Production Limits Required for each Manufacturing Plant This table specifies the maximum amount (in percent) that the manufacturing plant will produce of any type of finished good above the amount specified in the forecast

Outputs:
The model will output the following information: Weekly inventory levels of raw materials and finished goods at the manufacturing plants Weekly inventory levels of the finished goods at the DCs

Weekly service levels at each DC and the min, ave, and max delay times