Optimize the supply chain using the advanced planning Scheduling System (APS)

Today, the advanced planning scheduling system has become one of the hottest topics in supply chain management. APS uses some complex mathematical operations to process some variables, making supply chain optimization a reality.

Today, optimization technology has become a key tool in enterprises' decision-making to increase their competitive advantages. Perhaps, for optimization technology, the most widely used field is in the supply chain management, Intelligent OperationAlgorithmIt provides major technical support for APs, not only as a custom solution, but also as a commercial package for numerous enterprises.

For the manufacturing industry, APS is attractive: companies can optimize the supply chain to reduce costs, increase product profits, reduce inventory, and increase factory output. According to a survey at the AMR Research Center in Boston, enterprises that have adopted the APS model produce About 300% ROI.

At present, more and more aps Products Use Optimization Technology, which runs through all aspects of the supply chain, from procurement to manufacturing to distribution. Some companies have already used optimization technologies in their APs systems, so they can use this tool more effectively and increase their global competitiveness.

Application of Optimization Technology

Over the past three years, most APS products have incorporated complex optimization functions into their systems, making APS almost synonymous with supply chain optimization. APS enables the customer's order flow and material requirements to be carried out simultaneously during manufacturing and distribution activities.

APS is becoming more and more popular than supply chain management systems, but has been incorporated into the entire ERP system. In fact, some major ERP suppliers have recently joined the APS field to compete with SCM suppliers that provide APS products. These development trends will eventually benefit end users as application software expands their applicability.

ERP and SCM mainly involve providing some key data, improving productivity for enterprises and providing different functions for optimized applications. Prior to the emergence of this technology, an experienced business analyst will always make an analysis of what will happen if so before making a major decision, try to find some associations from multiple possibilities.

In the optimization technical model, every business problem is represented as a variable. The relationship between business issues is expressed as a formula constraint, while the expected goal (such as maximizing profits) is added. Then, the optimization-based solution will analyze the model and make a commercial decision based on the specific constraints.

Different Supply Chain Optimization modes can affect different supply chain processes and links. In a strategic sense, optimization technology is applied to the entire planning process, from procurement to manufacturing to distribution. Optimization plan problems are often designed to solve some strategic problems. How can we change the entire process over time in the ever-changing business competition, when and where to take some major initiatives, the plan will answer the question: what should we do?

In short, linear programming can be used to solve long-term planning problems. The job research experts hired by many large companies work to design internal applications. LP technology is based on applied mathematics rather than computer technology.

Strategic business issues included in the Supply Chain plan include:

How many factories are required? Their location? What products do they produce?
How many sales centers are required? Where are they located? What products should they reserve? What customers does the sales center serve?
Select a supplier.

Each of the above questions is interrelated, and the answer to one question will be related to the other.

With the linear constraint theory applied, LP is an effective technology to solve the problem. The result is usually a longer-term framework rather than a representation in the plan. For short-term scheduling problems that involve operation, we usually use the latest technology called constrained programming. CPProgramIt was born in the computer field and has an interesting history. A few decades ago, the application of artificial intelligence had affected CP and provided solutions for repeated logical reasoning processes. However, they were only applied in some special fields. CP technology has been successfully applied in business since the very beginning. Today, optimization technology has been widely used in APS applications.

About schedule

What is "What are we going to do ?". Some short-term scheduling problems are usually solved through CP, including how to arrange order production or how to arrange the optimal order of stations on a production device. The production schedule includes synchronizing the workflow and Material Supply and making optimal use of resources. Once the product leaves the factory, the optimization technology can reduce the transportation cost by arranging transportation at full capacity, or select the best transportation mode on the premise that the customer agreed on the date.

LP and CP are already independent disciplines, all of which require high-level technology and training from experts in the software development industry. Due to the lack of professional training personnel and the increasing development of technologies, various technologies have developed rapidly. At the same time, enterprises are increasingly demanding optimization technologies.

Fortunately, some new tools are generated, such as some common modeling languages. They simplify development steps and shorten development time. These tools provide a simple development framework that enables application developers to use CP and LP technologies, so that they can achieve good results in some special fields. These development tools will have a significant impact on future APS solutions.

Real-time response to "e-time" on the Internet"

Real-time is required in supply chain management ". The execution system is the most new field in the application of supply chain optimization, which affects the efficiency and profit of an enterprise to a great extent. There is a problem that needs to be optimized. We have discussed it above, that is, the Order Sorting Problem in the manufacturing process.

The vast majority of efficient real-time execution systems can quickly respond to customer orders. For manufacturers, it is increasingly important to provide personalized products and timely product technologies to customers. These implementation technologies apply complex optimization technologies and are able to fulfill their commitments (ATP) and the promised capacity (CTP), ATP mainly considers whether some special orders can be satisfied in the existing inventory structure and inventory level. In a more extensive field, CTP determines whether a new production order can be placed in the Production Scheduling Based on the factory's production capacity and spare parts supply, and can be completed by the required date. E-commerce shows some new ideas. enterprises can enter new markets through the Internet, shorten the supply chain, and generate value chains, facing increasingly fierce competition in the global market, optimization Technology plays a key role.

E-commerce requires an intelligent supply chain that can quickly access data everywhere. We use complex optimization technologies so that partners in the supply chain can use web technologies to implement real-time joint decisions so that they can quickly respond to customers.

This is an e-commerce cooperation era, and the development of supply chain management will enter a new level. In addition to internal optimization, enterprises will also focus on how to transform customers' needs into improving customer satisfaction. For example, an enterprise makes an optimal plan for its production, distribution, and transportation through joint prediction with other virtual organizations to meet potential and existing customers. E-commerce cooperation requires a lot of planning, such as production scheduling and sorting, sales management and procurement planning.

The network changes the way enterprises contact customers and handles product configuration issues through the application of the customer relationship management system (CRM. The customer selects parts online or matches products based on the features they need to achieve optimal configuration, and the CRM system can provide intelligent support ., The optimization technology is adopted in the CRM solution, so that the new generation of configuration system can provide a wider selection space and higher accuracy. In addition, the new configuration system connects to the supply chain system to provide customers with alternative product configuration solutions, as well as related dates and quotations.

Mixed use of multiple methods produces multiple choices

By quickly analyzing and comparing the advantages and disadvantages of different decision-making solutions, the optimization technology enables the APS system to solve a large number of complex problems, thus generating more competitive advantages. In supply chain management, optimization technology can best influence the efficiency of enterprises and produce the largest ROI ). Traditional supply chains are applied only to planning and sorting, and some advanced enterprises adopt the latest technology to sort and configure, and benefit from it.

Experts often use optimization technologies that are familiar to them, such as CP or LP. However, for many problems of enterprises, if these technologies are used in combination, it may lead to better solutions for enterprises, so that enterprises can have more choices, it will also generate more competitive advantages.

Optimization Case Analysis

Case: Chrysler Motor Company

Problem: in the production line, the painting process of vehicles creates a major bottleneck and affects the output of enterprises. Spray paint is a very complex process, including the spray sequence, the purification of conventional spray guns, and the use of detergents, which will bring environmental problems.

Challenge: the management department should consider the problems associated with the production line to avoid bottlenecks. If we make a red car, its production process has been optimized, and the manpower required to install the diesel engine is limited, this will lead to the speed of the entire production line to slow down, the production of the car waiting to install the diesel engine, in this way, some new bottlenecks will occur and the overall output will be affected. When some spray paint links are in optimal operation, we check other parts of the production line to determine whether they are overloaded or not fully used to locate the optimization link.

Results: After the new sorting system was used in eight factories, the paint purification volume was reduced from 383 to 191 every day, and each progress time was reduced from 5 hours to 56 minutes to 2 hours and one quarter.

The sorting system also eliminates bottlenecks. Increasing the purification rate from 10% to 20%, saving US $0.5 million a year in some factories, and saving the company 7 million a year. Now the company has used this software to optimize the entire car production process, which will reduce the cost of several millions of dollars.

Solution: Chrysler decided to develop a scheduling system together with ilog, a French software company, to optimize the engine production process.

Which companies benefit the most?

If a company's executive layer can feel the benefits of supply chain improvement, the adoption of optimization technology will make the company profit from it. Some enterprises will invest heavily in optimization technology, which is mainly determined by the nature of their business. For example:

For the food, beverage, and packaging industries, the special nature of the industry determines that they need functions such as transportation optimization and optimal inventory control;
Capital-intensive enterprises, including semiconductor and steel plants, are obviously important for them to optimize their production, hybrid products and product structures;
Material concentration, like the clothing and electronics industries, they need optimization technologies to help them decide what to produce, where to produce, and where to find raw material supply.