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Process of balancing available supply against demand A way of fulfilling customer demand in a most efficient way Most efficient use of resources including but not limited to manufacturing capabilities, storage capabilities and distribution capabilities
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Ability to develop a model of your entire supply network & its constraints to synchronize activities & plan the flow of material along the entire length of supply chain to create feasible plans for purchasing, manufacturing, inventory & transportation
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Ability
Ability
Advantages of SNP
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Functions of SNP
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SNP Heuristic
A
Performs
requirement planning throughout the entire supply chain network to determine how your organization can best satisfy customer demands
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SNP Heuristic
Demand
guidelines planning
Demand forecast Vs actual customer orders Demand fence Nets demand of a product and location level against inventory, product in transit and fixed production Recalculates requirements for sources ( raw material, finished goods) for the products and repeats for each location in the network Finally generates production and purchase requirements
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Requirement
SNP Heuristic
Proactive
Resource Utilization
Run capacity check Feasibility check, resource overload & tools to balance the load
Capacity
leveling
Alert for capacity overload Perform simulative planning by manipulating resource utilization to balance resources Monitor the changes
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SNP Optimizer
Objective
function which is to minimize cost or maximize profit subject to constraints It attempts to manage the following costs & making decisions
Unfulfilled demand costs Production costs Safety stock costs Storage costs Transportation costs Shelf life costs
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Capable-to-Match
A
feasible solution for fulfilling all demands & considering available sourcing alternatives alternatives are checked first for intime demand fulfillment before late-demand fulfillment supplies and demands on a first come first serve basis while taking production/transportation/existing supplies limitations onto consideration
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Sources
Matches
Thank you
Divya
Sosa
8/14/12