Supply Chain Design Software and Tools for Manufacturing and Production Capacity Planning

Model production footprint and analyze scenarios to balance existing manufacturing capacity with additional production needs with capacity planning software

Many of the world’s leading companies have found that modeling production footprint, operations, production and manufacturing capacity as part of their end-to-end supply chain design practice can be the key to outperforming the competition. Companies are now able to use capacity modeling tools to manipulate large amounts of data to model, analyze and optimize their end-to-end supply chain operations, from large-scale network optimization all the way to SKU-level inventory optimization and transportation analysis.

Production or manufacturing companies face many capacity-related questions, including “make vs. buy” decisions, where to make products (often referred to as the “off-shore vs. near-shore” or “low-cost vs. local” question), when they will run out of capacity, and where to add additional capacity. In making these fundamental manufacturing production capacity planning decisions, companies often fall into the trap of focusing only on the production costs or investment costs and forget to focus on the entire end-to-end supply chain, which includes many cost factors including transportation, inventory and tax.

Another set of strategic decisions manufacturers need to consider revolves around the production footprint. The “footprint” represents the physical facility and quantity in which each product is manufactured, along with the capacity required to make it happen. Production footprint decisions are best made when considering the end-to-end supply chain, not just local or point-in-time requirements using capacity planning software. Oftentimes demand for products shifts over time to new regions or different quantities, and suppliers and cost structures change as well. As these changes occur, the production footprint should change to keep in-sync.

Supply Chain Guru®

SUPPLY CHAIN NETWORK OPTIMIZATION SOFTWARE

With LLamasoft® Supply Chain Guru® top-performing companies utilize production capacity planning software to make decisions that are optimized across the entire supply chain, using modeling technology to help them identify the tradeoffs across all the different cost elements. As part of this continuous supply chain design process, capacity planning can be used to identify major improvements in cost, service and risk mitigation—and not using the traditional capacity planning software. Modeling the production footprint and analyzing varying scenarios using LLamasoft’s supply chain design capacity planning tools helps a company balance existing capacity with the investment required to add additional production.

  • Network Optimization for Post-Acquisition Long-Range Capacity Planning

    Following a major acquisition, a food and beverage producer needed to asses capacity requirements for its distribution network.

  • Network Optimization Identifies $17 Million in Savings While Exceeding Service Levels

    As they opened new retail locations the company needed to evaluate the need for new DCs and best locations for new facilities.

  • Building The Best Designed Supply Chain Key To Successful RFPs

    A Canadian medical testing company needed to model and redesign critical aspects of their service network.

  • Modeling Warehouse Capacity to Support Monthly S&OP

    Global retailer uses detailed DC models to predict capacity bottlenecks and support monthly S&OP process and long-term investment and tactical planning.

  • Designing a Network to Support an Omni-Channel Fulfillment Strategy

    With significant growth expected in the coming years from online channels, a large department store chain used network optimization to build an omni-channel fulfillment strategy.

  • Leading South African Retailer Creates Network Optimization Model for Continuous Supply Chain Improvement

    Facing a period of significant growth, the retailer created a network optimization model to understand the impact of the projected volume on its network and identify optimal network configuration.

  • Using Capacity Planning to Predict the Impact of Projected Future Demand on Distribution Infrastructure

    Modeling technology predicts the impact of projected future demand on fuel distribution infrastructure.

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Production Modeling: Top 5 Initiatives to Drive Breakthrough Performance

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