Study 5: Refine Capacity Smoothing

This study can help you ensure resource requirements in your supply chain.

Impact – 

As certain resources are forced to close, other resources will experience an increased load. Companies may not be able to adequately ramp up capacity and lose sales.  

Action – 

Inventory must be kept in anticipation of resource unavailability in the future. At the same time, over-utilization must be reduced to not exhaust the resources. 

How –

AIMMS S&OP Navigator enables users to perform capacity smoothing. This incurs a penalty on over-utilization and tries to minimize it by ensuring that inventory has been built up in anticipation of future shortages. It also suggests alternative distribution options for obtaining the product in case the resource in question is unavailable. 

Demo –

Capacity Smoothing in S&OP Navigator

This article is part of the series Immediate Supply Chain Actions to Take Amid COVID-19.