Challenge
The aim of demand forecasting is to forecast higher quality components demand overnight via an integrated order and components forecast:
- Creating planned orders taking into account targets (models and code parts) and constraints (product description, production order) in the delivery view.
- Determination of weights for each planned order for targeted achievement of targets (consumption quotas) and consideration of restrictions in the delivery and production view.
Solution
As this is a problem with a large number of variables and constraints, the Column Generation optimization procedure is implemented as a solution.
Benefit
- Orders and components demands are currently determined overnight within a week. This means a considerable process shortening
- Suppliers get 2 weeks more lead time
- Integrated, cross-department processing taking into account the specifications and restrictions of all parties involved
- Program changes and reallocations are completely preventively safeguarded
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