Collaboration Using What-If Models (What-If Workflow)

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There may be times when it would be helpful to see the impact of changes to the inputs to Inventory Optimization for a Business Unit. For example, this workflow considers three scenarios that are modified copies of the same baseline scenario:

• Scenario 1 is run with a 5% forecast increase with current inventory

• Scenario 2 is run with a 5% forecast increase with optimized stock levels

• Scenario 3 is run with a 5% forecast increase with current recommended stock levels

1. Make sure these objects are defined:

a. A Baseline Scenario.

b. A segment that includes the SKUs for the Business Unit.

If you have to create or modify the segment, then you will need to run the Sychronize Database AutoPilot process.

c. A What-If Model that represents the changes to the inputs that are being collaborated. For example:

▪ What-If Model Details

▪ Field = Customer Period Forecast

▪ Adjustment Operation = Increase by Percent

▪ Value = 5

▪ What-If Model Assigned Segments

▪ The segment identified in step 1b

d. A Service Group for reporting on the Business Unit

▪ Do not set any targets

▪ Assign the segment identified in step 1b

e. A copy of the Optimization Set used by the Baseline Scenario identified in step 1a.

▪ Add the Service Group identified in step 1d.

2. Use the Copy function on the Scenarios page to create three new scenarios from the Baseline Scenario identified in step 1a:

a. Scenario 1 – 5% Increase with Current Inventory

Use the following settings

▪ Optimization Set = The copy of the Optimization Set defined in step 1e

▪ What-If Model = The What-If Model defined in step 1c

▪ Use External Values = Use Inventory Position

b. Scenario 2– 5% Increase with Optimized Stock Levels

Use the following specifications

▪ Optimization Set = The copy of the Optimization Set defined in step 1e

▪ What-If Model = The What-If Model defined in step 1c

▪ Use External Values = None

c. Scenario 3– 5% Increase with Current Recommended Stock Levels

Use the following specifications

▪ Optimization Set = The copy of the Optimization Set defined in step 1e

▪ What-If Model = The What-If Model defined in step 1c

▪ Use External Values = Use Production ROP

3. Open the Scenarios page and calculate the three scenarios created in step 2.

4. When the calculate process for each scenario is complete, you can begin reviewing the output.

a. Open the Scenario Summary page to view the output of the three scenarios.

b. Open the Scenario Budget Summary page to compare the results.

c. Open the Service Group Budget Summary page to compare the results.

More details on these steps is planned for the future.

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