About this Presentation
This presentation shows a simulation result that supports the utility value of make-to-availability (MTA) in supply chain planning (SCP). A simple 2-stage supply chain model is adopted in order to investigate the impact of production planning upon the volatility reduction of supply chain planning (SCP). Examined are those of MTA scheme and Sales and Operations Planning (S&OP) method. Comparative analysis of these two methods shows that MTA does not induce bigger volatility than S&OP does, where the volatility index is measured by the ratio of production plan variations to that of sales plan. Statistical analysis indicates that MTA-based production planning can be evaluated as one of the important factors in reducing the so called Bullwhip Effect in a supply chain.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The Buri effect, a phenomenon in the upstream supply chain where variances of customer demand become larger, can be reduced by switching from SNOP to MTA in supply chain planning.
MTA is less reliant on forecasting, making it more efficient and less volatile than SNOP.
Lowering the level of reliance on forecasting is essential to shift from fragility to robustness in supply chain management.
Instructor(s)
