Here we depict main modules that are used in SIMPLE-System, explain their purposes, the principles of information processing and show the order in which to work with SIMPLE-System. Genobium continues to develop SIMPLE-System's functionality and adapts it for specific users` conditions.
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The principles of SIMPLE-System's processing:
The user starts by entering parameters (see Figure 1 below)
He then starts processing for group A to get ready orders. You can see the positions of the A-group arranged according to their working-day activity. (see Figure 2 below)
After ABC-processing is finished, you can see the actual, normative and simulation effectiveness in the EFFECTIVITY module. The graphs shows total inventory, blue is actual and pink is simulated inventory.
For the remnants of the previous day the system can evaluate the need to restock positions according to optimal norms. If the supplier is shown in red then the system recommends to initiate the order (it is at its optimal reorder point) (see Figure 9 below).
It starts with digesting the sales history, filtering out non-representative demand and accounting for sales decreases during deficit periods.
Using simple but thorough statistical procedures SIMPLE-System makes demand forecasts. It also forecasts deviation from forecast of average demand.
Then SIMPLE-System unites the forecasts of mean demand and its variation with mean lead time, order costs, present and transportation stock, into order recommendations for all inventory items. Using the operative control module the so called optimal group reorder point is calculated. The reorder point is the moment in time when an order is issued. The optimal group reorder point is the optimal moment when the order for all the positions should be issued for a specific supplier. Using innovative methods SIMPLE-System finds this moment and indicates it by showing the supplier in red.
The full use of order-recommendation leads to a dramatic improvement of the actual values and to the two graphs (actual and simulated) approaching each other. SIMPLE-System does this using optimal norms of current and safety stock, calculated in the norms module. This module contains an innovative method for assortment optimization.
All the calculations are directed to improving your Return on Inventory.
If the user orders as described by SIMPLE-System, he will consequently achieve actual effectiveness close to the simulated effectiveness, and we will see the blue and pink graphs approache. The effectiveness evaluation module shows you the results, and provides you with the analysis of average inventory, sales, service level and deficit, turnover, and, last but not least, the ROI, giving you a comparison of your actual results with planned and simulated results.