This simulation page allows you to perform offline modeling in order to examine how different safety stock decisions affect the quantity of inventory being stored.
Before you start
Use the context selectors at the top-right to select a location and product combination. Additionally, you can manually enter the required values using the search function.
Use the Product Filter field to filter on a specific product.
Supply Chain Cost Curve Simulation
The chart displays the output values of the In Transit Stock (R), Average Cycle Stock (R), Safety Stock (R), and Total (R) for all product and location combinations at various service levels.
The parameters are shown in the Effective Parameters card. You can configure the parameters in the Edit Parameters card. When you update parameters, the new values are shown in the Effective Parameters card, and are applied globally.
The Edit Parameter panel shows all the default safety stock parameters. Additionally, the Effective Parameter panel shows the current effective safety stock parameters.
| Parameters | Values |
| SIM Service Level Type | Determines the nature of the service level. That is, if the service level is 95%, then setting this to Fill Rate then the service level means 95% of the demand will be met; if this parameter is set to Cycle Service Level, then the service level means 95% probability of not stocking out in the period. |
| SIM Default Lead Time | The lead-time, in number of periods. |
| SIM Default Review Frequency | The frequency, in periods, with which inventory is reviewed/ordered. This will determine the cycle stock. |
| SIM Input to Safety Stock | The measure of variability, which the safety stock needs to protect against.
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Additional information
- Designed for inventory investment analysis only.
- Inventory rules and lead times are set by the settings. They're used for all products and locations, even if the system's core business data isn't changed.
