openPR Logo
Press release

Optimal Supply Chain Design despite Uncertainties

03-24-2010 10:13 AM CET | Logistics & Transport

Press release from: Axxom Software AG

In cooperation with Henkel, Bergische Universitaet Wuppertal and the University of Erlangen-Nuremberg, Axxom analyzed the impact of fluctuating parameters on production and logistics networks. In a recent, successfully finished two-year research project the involved parties identified and developed new approaches and concepts for considering volatility in supply chain design.

The new approaches allow a robust supply chain optimization, which considers uncertainties in input parameters for the supply chain design. For this, the project partners analyzed different optimization algorithms and developed them to be able to cope with volatility and uncertainty. The solutions found shall be as good as possible even for unfavorable input parameters.

“Using the new algorithms we gained important insights into coping with uncertain input parameters”, explains Axel Richter, Project Manager at Henkel. “Especially important for our daily business is the impact of fluctuating demands on inventory and ability to deliver, which can be quantified by the used methods. The application of penalty costs allows the prioritization of the portfolio for example regarding product profitability or range structure.” In addition, the findings from inventory management help Henkel to evaluate existing safety stocks on the basis of previous demand development.

Another important result of the research project, which was supported by the Bayerische Forschungsstiftung (Bavarian Research Foundation) is the identification of the most important input parameters on today`s supply chains. When modelling and optimizing logistics networks, uncertainties can be described by the following variable input parameters:
- Quantity of Sales: Uncertainty caused e.g. by the introduction of new products to the market or by changes of the economic environment.
- Fluctuations: E.g. seasonal or economical impacts cause uncertainty of workload. Make or Buy?
- Cost of production: Uncertainty caused e.g. by investment costs to enter new markets.
- Raw material costs or raw material mix: Uncertainty e.g. caused by crude oil shortage or failure of crops.

In addition to the variable input parameters, the researchers also determined factors that are necessary for practical modelling and optimization of logistics networks. At producing companies, for example, production volume and complexity costs play an important role. Generally, a production site is more effective if it handles a small number of huge orders instead of a huge amount of small orders. Such efficiency factors have to be considered in cost appraisal and are already required for the optimization. An exact calculation is only possible after the whole product allocation is conducted – in fact, after the optimization. To solve these problems, the project partners developed an iterative approach which has also been integrated in the solution ORion-PI® Network Scale Savings of Axxom. It allows users to consider complexity costs and economy of scale when analyzing and optimizing their logistics and production networks. The result is a more realistic and efficient supply chain optimization.

Axxom Software AG is an international provider of software solutions and services for the comprehensive optimization of value-add processes. With its software ORion-PI® the technology company offers a solution for the design, simulation, planning and optimization of all business processes and systems in all fields of logistics. ORion-PI® is in use on five continents in more than 35 countries. Axxom Software AG was founded in April 2001. Since 2004 Axxom has a development center in Timisoara / Romania.

Axxom Software AG
Jens Verstaen
Corporate Communications
Paul-Gerhardt-Allee 46
81245 Munich / Germany
Tel: +49 (0)89 / 568 23-321
Fax: +49 (0)89 / 568 23-399
E-Mail: jens.verstaen@axxom.com
Internet: www.axxom.com

This release was published on openPR.

Permanent link to this press release:

Copy
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Optimal Supply Chain Design despite Uncertainties here

News-ID: 124673 • Views: 1562

More Releases from Axxom Software AG

New Axxom software helps DPD to increase efficiency in staff planning and schedu …
DPD, a leading international provider of parcel services, decided to implement the solution ORion-PI of Axxom Software AG for its staff planning tasks at its Villingen-Schwenningen depot. A special feature of the software is a new developed scheduling algorithm that allows DPD to combine automated planning with the experience of its shift supervisors. With this new solution, DPD is able to cope with an increasing number of shipments, reducing
Smart optimization solutions for warehouse and supply chain management
Munich / Germany, March 9, 2011 – For the first time from 21 to 24 March, Axxom Software AG will present its warehouse and supply chain optimization portfolio at the US trade fair ProMAT in Chicago (IL). At stand 3481, the optimization experts will show how companies can significantly reduce warehouse and supply chain costs and improve their service level at the same time by employing workforce planning, warehouse optimization
Axxom`s principal consultant honored as Pro to know
Munich, March 3, 2011 – Supply & Demand Chain Executive magazine, the executive's user manual for successful supply and demand chain transformation, nominated Dr. Maren Martens, Vice President Optimization & Consulting at Axxom Software AG, as Provider Pro to Know in the supply chain industry. The renowned magazine honors Dr. Martens as thought-leader in the supply chain industry, helping companies to cope with actual challenges in logistics and supply chain
Axxom goes app
“Axxom goes app” – that’s the motto of Axxom Software AG at this years’ trade fair IMHX (hall 20, booth F95) to be held from November 16 - 19 in Birmingham (UK). In addition to its standard applications, the company is presenting its new strategy for smartphone and pad software. The Axxom apps are intended to enable the user to plan and to optimize logistics, staff planning, supply chain and

All 5 Releases


More Releases for Henkel

Global Hair Mask Market 2018: Key Players – Coty, Unilever, L’Oréal, Henkel …
Summary WiseGuyReports.com adds “Hair Mask Market 2018 Global Analysis, Growth, Trends and Opportunities Research Report Forecasting to 2023” reports to its database. This report provides in depth study of “Hair Mask Market” using SWOT analysis i.e. Strength, Weakness, Opportunities and Threat to the organization. The Hair Mask Market report also provides an in-depth survey of key players in the market which is based on the various objectives of an organization such as
Global Pressure-sensitive Adhesive Market 2025 | Henkel, 3M, H.B.FULLER, Bostik
The Latest Research Report Global Pressure-sensitive Adhesive Market Insights,Forecast to 2025 provides information on pricing, market analysis, shares, forecast, and company profiles for key industry participants. - MarketResearchReports.biz The main objective of this report is to aid the user in understanding the market as a whole, its definitions, segmentation, market potential, influential trends, and the barriers that it is facing. Meticulous research and analysis were an important part of the report
Adhesive Equipment Market: Henkel, Nordson Corporation, Graco, Valco Melton
MarketResearchReports.Biz has recently announced the Latest industry research report on: "Global Adhesive Equipment Market" : Industry Size, Share, Research, Reviews, Analysis, Strategies, Demand, Growth, Segmentation, Parameters, Forecasts. This report studies the global Adhesive Equipment market status and forecast, categorizes the global Adhesive Equipment market size (value & volume) by key players, type, application, and region. This report focuses on the top players in North America, Europe, China, Japan, Southeast Asia India
Global Dispensing Valves Market 2018 - Henkel, Nordson, MUSASHI, Graco
The statistical surveying information incorporated into the Dispensing Valves report is the aftereffect of significant essential and optional research exercises. The report fragments the worldwide market for Dispensing Valves based on makers, item compose, applications, and Region. In this report, each fragment is contemplated completely and measurements are introduced in detail. The report offers an exact outline of the worldwide Dispensing Valves advertise covering key factors, for example, drivers and
Henkel Innovation Challenge kicks off
The 5th Henkel Innovation Challenge, a global event open for students across India to compete as innovators, was announced today. The competition focuses on sustainability and entails that the innovations must contribute to sustainable development in areas such as reducing energy or water consumption. The global competition will have teams from 14 European countries and the Asia/Pacific region compete for a top place in the challenge. This year’s international final
Henkel Awards Krayden for Its Outstanding Teamwork
DENVER — October 2011 — Krayden, Inc., a leading distributor of engineered materials, announces that it has received an Outstanding Teamwork 2011 Award from Henkel Technologies. The award reiterates Krayden’s ongoing dedication to world-class customer services. Krayden was selected for the award for its exemplary knowledge of and adherence to Henkel’s policies. Criteria include adherence to case quantities and lead times, and responding to inquiries in a timely manner. “It is