Mass optimization - Optimize your whole storage
When companies are expanding their processes also the need for more
spare parts arises. As a result of this the amount of stock items in
the CMS grows easily very large, and so does the storaging costs.
Cutting down these costs without affecting production has proven to be
a challenging task to most.
StockOptim software allows the effective optimization of a large stock
item groups that provides information about the possible hidden problems among the
items including larger than needed item amounts in the storage and risks
coming from shortage situations.
Item optimization projects collect the history data of stock item usage
from the storage CMS. In order to create approximate calculations based
on the history data it should include a sufficient number of storage
visits per each stock item. The possible flaws in the data are compensated
by performing an overview for the optimization results. The overview is
focused on the items that show in the optimization results that the
current storage strategy (item reorder point and order size) does not
fill the required service rate requirement (probability that the
storage client gets all the needed spare parts from the storage).
- Locating stock items that contain risks in their current storage
strategies and to correct these strategies in a cost-optimal way
- Locating stock items that has the potential to decrease their
overall storing costs (lower stock levels, larger order sizes)
- Transferring stock item history data from storage database to Excel documents
- Optimizing stock item storage strategies in StockOptim software
- Reviewing the optimization results together with the storage personnel and concentrating on the possibly located problematic storage strategies
- Changing the problematic stock item storage strategies to the storage system
The reviewing process takes into account that the required service rate
can be lowered with some items, or the service rate value calculated by
StockOptim from the item usage data is too low compared to the reality, if:
- Item is non-critical and it is considered acceptable that the storage cannot serve all the storage clients perfectly (if item ABC classification is used, it might be considered to lower the current classification)
- Item is usually taken from the storage by a storage client as a larger amount as is needed, and some of the items are stored to some unofficial local storage that cannot be seen in the system (true service rate is higher that the calculated one)
- Item is ordered from the suppliers in different and varying order sizes than what the official storage strategy requires as the 'order size' input (true service rate is higher than the calculated one)