Emergency Backup Location Optimization
Inventory can be received from alternate emergency sources when there is insufficient stock at the primary stocking location. When a part from the field location is needed and it is not available, the emergency backup location is considered for replenishment instead of waiting for the back ordered part to arrive from the replenishment source.
Follow these steps to setup and use the Emergency Backup Location Optimization functionality.
1. Create a location hierarchy that holds the locations that are used for emergency backup sourcing.
2. Create a service group parameter with the following settings:
◦ Service Metric = Fill Rate with Emergency Backup
◦ Emergency Backup Location Hierarchy = <the hierarchy where the emergency location resides>
◦ Service Targets for the Primary Emergency Fill Rate and Secondary Emergency Fill Rate
◦ Location Targets for the Primary Emergency Fill Rate and Secondary Emergency Fill Rate
3. Add the service group parameter to an Optimization Set.
 |
The fill rate method will always be Lost Sales for a Covered SKU, regardless of the fill rate method setting.
|
All of the emergency backup location processing occurs after the optimization calculation is finished. The processing steps are:
1. Location optimization and multi-echelon optimization
2. Network service group optimization
3. Emergency backup optimization
4. MIME ignores emergency networks because the related SKUs were already removed from any emergency relationships
5. Budget optimization
|
|
• SKU Constraints are honored in the part/SKU processing.
• Emergency SKUs are not included in the Churn Control group allocation algorithms.
• The Inventory Optimization Scenario does not allow the approximate fill rate method to be used with the Emergency Backup Optimization functionality. The primary and secondary emergency backup location relationships will not be established among SKUs, when the approximate fill rate methods are selected for the scenario.
• A time phased service group parameter can also be created for an emergency backup service group parameter by using the Time Phased Service Groups page.
|