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Dependent demand determination for demand forecasting

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  • Reference: Dependent demand determination for demand forecasting

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

Your contact

Dragan, Sunjka

Dragan Sunjka

Lead IT Consultant Automotive & Manufacturing

Read more about AI

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