MRO Parts Inventory Planning
Valogix enhances the Assembly Planning capability. Valogix uses a Bill of Material (BOM) hierarchy source and establishes the 'level' of a component i.e. parent level (Level 1) sub assembly level (s) (Level 2) Raw Material Level (s) (Level 3). It accommodates a component with different levels in different bills. It also manages forward orders from customers.
At the component level, usage history is derived from sales history (orders or invoices) of all make-to-order or make-to-stock parents x (times) quantity for each component needed. This 'Usage' history is added to any independent sales history of the component. A components forecast is based on its aggregated usage/demand.
Parent items, including sub assemblies, are set as 'Make to Order' or 'Make to Stock'.
- Make to Order items are treated as special orders, such that they appear on the replenishment list only if the quantity on hand is insufficient to meet an open sales order.
- A Make-to-Stock item is forecasted, optimized (i.e. a stocking quantity is computed) and planned.
- A third BOM type is set to recognized BOM parents that are purchased and not made. They are set as BOMs in case of an emergency enabling them to be made internally; or perhaps they were once made internally and have shifted to a purchased status.
Managing the ChallengesInventory Management Challenges
- Demand & Lead Time Variability
- Difficulty in setting stocking levels
- Increased reliance on foreign imports
- Slow, excess and obsolete inventory
- Limited ability to forecast & plan accurately
- Wrong mix and amount of in-stock items
- Complexity in determining how much to make, buy, transfer
Managing Assembly Challenges
Automates the MRP & Assembly inventory planning process:
- Forecasting of random demand
- Production of both make-to-order and make-to-stock
- Optimization for efficiency and cost control
Easy to Use and Affordable:
- Simple but effective especially in managing forward orders
- Exception based - alerts warn of potential future issues
Provides visibility to all items and locations:
- Available inventory components as well as finished goods