Final Results
After running the model upon all scenarios, the results are clear, as in the next figures, for the quadrants A-X, A-Y and A-Z, respectively.
Comparing sum of the aggregate results of each quadrant, the results are coherent with the observations made previously.
Conclusions and Suggestions
Products whose behaviour is identical to the second type described in the Development section should be parametrized accordingly, without hesitation.
Ignoring the first behaviour, which suggests no changes in the parametrizations, the third and fourth behaviours’ parametrization must be slowly implemented in the company’s working environment, if at all, while analysing their impact upon the company’s operation.
The most relevant distinction between the tested scenarios (MRS and PRS) is the implementation cost. The Material Restriction Scenario can be implemented at virtually no cost, directly providing advantages, while the Production Restriction Scenario has a high implementation cost, thus rendering the RoI unacceptable. Especially since the proposed improvement is seen as an average yearly saving. This leads to the conclusion that only the Material Restriction Scenario should be implemented along the usage of the proposed model.
Attempting to implement the MRS without the proposed model yields no benefits, as the improvements are directly related to the parametrization of CT and not the reduction of CLT
Future Improvements
The treated problematic, described in the Dissertation section, considers the global chain as a unique production and distribution centre.
A possible improvement would be the structuring of the distribution network, and assign optimal Safety Stock levels per centre, linking the Stock Service Level and the Client Service Level.
To develop the proposed model, static periods of time were taken into consideration, in order to understand the evolution of each product’s results. However, once the model was complete, it became possible to adapt the model to non-static periods of time.
The project’s next step is a program whose inputs are the product’s SKU, the desired time periods under study (ideally multiples of 12), CT, CLT (MLT & PLT) and the user’s objectives. The output is a set of recommended RCT, while presenting result validations on a daily basis and the comparative results for the various scenarios. An example of an interface for the mentioned program is visible in the following figure.
