Output of IPO-IO Run Results

IPO-IO runs generate one or multiple type of recommendations, as described below. The type of analysis to be done in a run is selected in the UI (for ad-hoc runs) or determined by configurable flags (for batch runs).

Time-Phased Planning

Time-phased planning is the main type of analysis that must run as part of the batch, so the replenishment policies and PO/transfers are generated daily. The time-phased planning optimizes the distribution of inventory through the life cycle for every SKU and throughout the entire supply chain network. It provides point-in-time and time-phased purchase orders and transfers (warehouse-to-store and warehouse-to-warehouse),

The number of item-locations that are processed in each run can vary, based on the retailer's review schedule. During each run, only the item-locations that are due for review for replenishment on the next day are processed. For example, a run that is scheduled for a nightly batch on Sunday 01/08/2024 would generate optimal replenishment plan for item-locations that have a next review date of Monday 01/09/2024 in the retailer's replenishment system. This allows the end user to review and approve the policies and/or PO/transfers that were not auto-approved on Monday before they are pushed to the replenishment system for generating and executing orders.

The replenishment policies are characterized by two parameters: re-order point (RP) and receive up-to level (RUTL). These parameters are optimized and generated at the sku-location and can be reviewed and approved by the user or may be auto-approved. The auto/user approved policies can be exported to the MFCS to generate and execute transfers and purchase orders. If the user approves the recommended PO/transfers within IPO-IO, the approved orders can be exported to the MFCS. There are separate jobs for the export of replenishment policies, PO, and transfers so they can be enabled based on the business requirements.

Note:

Truck scaling is executed by default after the time-phased planning run finishes. There is no option to enable/disable the truck scaling process.

Trade-Off Analysis

These curves show the trade-off between metrics such as inventory cost and sales revenue for different target service levels. Trade-off curves are generated at the sku-location as well as the aggregate level of merchandise and location.

The trade-off analysis is not the kind of process that must be run daily because the changes in sales patterns, replenishment rules, and supply chain network are not that frequent. Therefore, it is typically recommended that the optimal trade-off curves updated quarterly or when there is a major change in one of the factors mentioned above.

Rebalancing Transfers

Rebalancing transfers are the transfers between stores. The goal of rebalancing transfers is to shift unproductive inventory and place it in locations that have a higher likelihood of selling and with a better margin, while minimizing the total cost of transfers (for example, shipping costs and any up-charges). Rebalancing transfers are generated at the sku-origin-destination level. The user can review the recommended rebalancing transfers and approve them. The approved transfers are pushed to the retailer's execution system.