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Demand forecasting and inventory management automation

solution

operations planning
supply chain

industry

manufacturas

technology

optimization
data-science
software

date
2025
tags

Development of a tool that allows minimizing scrap through the optimal selection of coil widths.

Problem characteristics

Tradeoff costs

  • There is a global trade-off between scrap and the number of raw materials.
  • A greater number of raw materials results in lower scrap costs, as products can be manufactured in a more customized way. 
  • A greater number of raw materials also results in higher inventory costs associated with greater uncertainty and the need to manage widths.

Problem resolution

  • Based on a set of SKUs to be produced over a one-year period, the selection of raw materials is optimized by minimizing scrap costs.
  • A rigorous mathematical model was developed to represent the reality of the decision-making process. It consists of:
    1. Sets
    2. Parameters (data)
    3. Variables: substrate widths to be activated, trimming per layer, etc.
    4. Constraints: meeting demand, minimum/maximum trimming.
    5. Objective function: Minimize Scrap Cost.

Beneficios adicionales

1
Cálculo del costo de obsolescencia del inventario.

2

Análisis del nivel de servicio ofrecido a clientes.

3

Cálculo de la demanda insatisfecha.

4

Desagregación del ahorro de la solución por sustrato.
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