Perform Kanban Simulation

Explanation

To perform an advanced kanban calculation using an actual demand profile, click Run Simulation. The purpose of the simulation is to determine whether an inventory stockout will occur given the current system settings. Unlike an ordinary kanban calculation, a kanban simulation uses a demand profile - a series of actual demand quantities over time - instead of the average demand quantity for the circuit. Each demand is assumed to reduce inventory, which triggers replenishment according to the specified lead time. If a stockout occurs, the simulation increases the stocked quantity, i.e., No of Kanbans or Qty per Kanban, and repeats the test until the simulation either finishes without a stockout or reaches its iteration limit, whichever comes first.

For initial on hand values, select Full Kanbans if you want the system to calculate the starting supply by assuming that all kanbans are full. Select Snapshot Within Lead Time if you want the system to use the current inventory quantity.

For intitial kanban quantities, select Recalculate if you want the system to perform a kanban calculation before starting the simulation. Select Use Values from Circuit if you want the system to use the current values for Qty per Kanban and No of Kanbans that were saved with the kanban circuit.

You can view the updated values in the Qty Net Onhand and Units Supply fields in the Demands section of the Kanban Demand page.

Note: A simulation is only an estimate of actual conditions. It cannot be used to predict stockouts with absolute accuracy.

Prerequisites

This activity requires that an actual demand profile be retrieved from the circuit.

System Effects

As a result of this activity the system calculates new kanban quantities for the circuit and updates these values.You can detect a stockout by querying for circuits with a negative Lowest Qty OH value.