Production planning investigate the areas that include forecasting, integrated production-inventory systems, deterministic inventory and lot-sizing models, multi-echelon supply networks, machine scheduling and capacity planning. Production planning systems require use of mathematical and computational techniques.
Often it might become more important to handle the interrelations between the sites in a supply chain than managing the sites. A wise production planning methodology considers optimizing the global contribution of the supply chain rather than performance of the each constituting components. This requires adaptation of a holistic approach. Production planning masters have to envision the entire supply chain and plan accordingly. The process from procuring raw materials to delivering the finished goods has to be planned consistently. While calculating the safety stock levels, the lead times, demand forecasts and similar factors have to be taken into account.
Production planning has two mainstream approaches. Either there exists a deterministic system in which the entire parameters such as lead time, demand, and price and so on are known in advance or the parameters under consideration are random. When the system is deterministic it becomes easy to determine the lot sizes and generally there is no need to carry inventory. However the difficulty comes with the uncertainty of basic parameters of the supply chain. The lead times and demand are never exactly known.
SOLVOYO offers a supply chain prescription to its customers. The entire span of supply chain is considered and optimization is performed based on the parameters calculated using advanced methodologies beforehand. Replenishment is determined using the forecast values generated by forecast generator application. According to customer expectations optimal lot-sizes, safety stocks, optimized routes are generated.