ADVANCED SOLUTIONORDER MASTER
- ORDER MASTER Help You To:
-
- 1. Minimize unnecessary inventory
- 2. Lower Sales opportunity cost by shortage
- 3. Focus on sales & purchase strategy by CAO(Computer Assisted Ordering)
Outline of a Solution
Basic functions
ORDER MASTER generates demand forecast and optimal purchase quantity to minimize excessive inventory. The system can be most effective in the following two ways:
- 1. Order from distribution center (wholesaler) to makers
- 2. Order from retailer to distribution center (wholesaler)
Features
Demand-forecast function that takes seasonal factors into consideration Optimal safety stock based on actual shipment records
Simulation Results
The following shows, as an example, a result of simulation conducted with a 95% service level (probability of no product shortage) for a simulation period of three months.
- Item: Seasoning A
- Achievement:Reduce 50% average inventory,
or inventory days from 7.9 to 3.6 days while avoiding shortage.
- Item: Food B
- Achievement:Reduce 40% average inventory,
or inventory days from 6.7 to 4.1 days.
SAP
Solutions for Execution Management for Manufacturing and Logistics