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Companies that manufacture or produce goods face the complex challenge to balance two opposing objectives:
(A) Provide responsive service to a constantly varying customer demand, and...
(B) Maintain consistent production schedules at the lowest possible costs.
In order to meet Objective A, many companies find themselves holding excess inventory or constantly expediting shipments – both costly activities that will blow an operations budget.
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Detailed Reporting for In-depth
Supply Chain Analysis |
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LLamasoft’s sales and demand balancing solution enables companies to model their entire end-to-end supply chain, including complex production processes, to get an accurate representation of the available options, bottlenecks, and constraints that exist through the network.
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The system can be integrated with the ERP environment to import a demand forecast. Optimal daily, weekly, monthly, or quarterly plans are output to set inventory levels, schedule production, and define distribution routing. Simulation can also be used to validate the plan before implementation.
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| A giant in the beverage industry has a trend for introducing and phasing out new products and flavors at a rapid pace. Add the number of distribution locations and requirement for 100% service, and operations planning becomes extremely complex. LLamasoft technology is being used to do weekly planning of production, inventory, and distribution based on a 17 week rolling forecast. |
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| A North American retail chain has extremely volatile demand patterns based on promotions and seasonal events. Because of warehouse and store capacity limitations, inventory needs to be positioned just in time to meet the expected demand spikes. LLamasoft’s tactical operations planning solution is used to create monthly inventory and transportation plans based on the projected demand spikes. |
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