TWD CWH Simulation

Simulation scope

Central stock of FG simulation

o ~1600 SKUs
o Replenishment was taken as 15 days for all SKUs (as average
assembly time)
Simulation time period of 8 months 01/10/09 01/06/10

Simulation logic:

Estimate the inventory needed to support a Pull Distribution system driven by

the actual past consumption. The Simulation uses the actual daily
consumption and accordingly executes the following automatically:

o Aligning the inventory target to demand (according to TOC Dynamic

Buffer Management)
o Replenishing stock daily to fill the target buffers

Simulation starting conditions:

Initial inventory targets (buffers) for the simulation were set based on three
months sales data which are prior to the simulation time period. Calculations
are set to the maximal reasonable consumption within a replenishment time
Simulation results:

*Notice - Stock out days (%) are 7% in the simulation rather than 0.07%
Examples

The below graphs are showing daily sales and stock of the simulated state for
a small selected sample of SKUs: