topic SAS FAW and IO doubts in Mathematical Optimization, Discrete-Event Simulation, and OR

SAS FAW and IO doubts

maddysbi — Wed, 30 Jul 2014 17:08:21 GMT

Hi Team,

Recently,we have been exposed to SAS FAW and IO products as a part of implementation.After studying the process,we have few doubts and want to get it clarified to explain to others in simple terms.Experts help is needed.

1) Here we are going to use the forecasted output for inventory optimization.Though there are IO integration jobs to pick up forecasted output,we want to know where exactly this forecasted output resides meaning which table after my forecast plan is run.

2) In IO,we came to know that forecasted output sits in forecast demand table.How does the forecasted output is used by inventory optimization (in business terms)?

3) What is intermittent demand table and what does it contain?

4) How do we define a network?What is the difference between a primary network and a primary route?

5) What is the use of facility item demand table and what data should be populated here?

6) What is total order quantity and total received quantity in facility item inventory table? Is it number of purchase orders raised and receipts?

7) Use of facility item network table?

😎 Meaning and use of Route Item table?

9) How do we account for pipeline inventory once the good in received?

10) What if customer order or purchase order is cancelled?How is it to be processed?

11) What role does customer order,item cost,lead time,distance,demand play in replenishment policies and order suggestions?

(lead time,distance may be used in network algorithms)

Thanks,

Maddy

Re: SAS FAW and IO doubts

MadhuriKulkarni — Tue, 30 Sep 2014 09:35:06 GMT

Hi Maddy,

Please see my responses to some of your questions.

Madhuri : Output is taken from the tables such as Finalfor, outstat, outmodelinfo etc. created in the FAW plan’s folder and is loaded into IOW.

2) In IO,we came to know that forecasted output sits in forecast demand table.How does the forecasted output is used by inventory optimization (in business terms)?

Proc MIRP generates future demand based on the mean and variance specified in the forecasted demand data. Please refer Proc MIRP user guide for more details.

3) What is intermittent demand table and what does it contain?

Madhuri : This table contains details of the intermittent demand that are required for Proc MIRP for each item- facility pair. Eg. Average demand interval, demand size and standard deviation.

4) How do we define a network?What is the difference between a primary network and a primary route?

Madhuri : Network table contains information about the supply chain network of the items. Please refer Proc MIRP guide for more information about single echelon, two echelon and multi-echelon networks. In general, in IO51, primary network may contain primary as well as alternate routes. For simplicity, you can define only primary routes in the primary network and all alternate routes can be defined in a pooling network.

5) What is the use of facility item demand table and what data should be populated here?

Madhuri: This table contains actual demand for the facility- item pair. It can be populated based on the customer orders. If the actual demand is higher than the forecasted demand data it will considered as input to optimization process.

6) What is total order quantity and total received quantity in facility item inventory table? Is it number of purchase orders raised and receipts?

Madhuri: Total order quantity contains the total items that are ordered during the reported period, that is, the period between two inventory inspection dates. For repairable parts, this column stores repairable parts that are sent to a repair center for repair. It can be null.

Total received quantity contains the total items that are received during the reported period, that is, the period between two inventory inspection dates. For repairable parts, this column stores parts that are
received after repairs. It can be null.

7) Use of facility item network table?

Madhuri: This table contains information about the combination of a facility and item pair that is associated with a network model. Items are supplied from a source facility to a destination facility through the network model. Multiple network paths can exist between the source and destination facilities. One of the network paths is the primary path.

😎 Meaning and use of Route Item table?

Madhuri: Route_x_item is the association table captures the pipeline cost amount and information related to lead time at the route item level.

11) What role does customer order,item cost,lead time,distance,demand play in replenishment policies and order suggestions?

(lead time,distance may be used in network algorithms)

Madhuri: Inputs such as forecasted demand, lead time information –minimum, maximum and average lead time, on-hand and pipeline inventory, transportation cost, holding cost etc are used in Inventory optimization. Please refer Proc MIRP guide for more details.

Re: SAS FAW and IO doubts

Shriram_Upadhye — Tue, 30 Sep 2014 10:07:43 GMT

Hi ,

Here are few more answers :

9) How do we account for pipeline inventory once the good in received?

Once the goods are received, the next data warehouse refresh should have that information from transactional system. The same information will then be fetched into IO. The next batch run of IO then takes care of the new information.

10) What if customer order or purchase order is cancelled?How is it to be processed?

Same as #9 above. Once the transactions ( Cancellation of PO or CO) takes place, the transactional system is supposed to update its database, and the next datawarehouse refresh will bring the information ( changes) to IO datamart. The next IO batch run will then take care of it.

Hope this helps !

Regards

Shriram Upadhye

SRDI, Pune, India