Cynax Simplifying Information Technology


    Graminae BV had many problems with their production process. Although they had a very concrete production plan they could not achieve their desired inventory levels.

    Graminae followed strict rules and regulations with regards to their production process. The forecast horizon was kept short, with a maximum length of 2 months, and the production team executed these plans accurately. Only in exceptional cases would a rush order be included in the plans, but generally the team only made what was planned. nevertheless  Graminae began to notice that the available inventory tended not to match the actual demand for their flour products. This was mostly noticeable in the highly flucatuating inventroy levels, which tended show large peaks and troughs.

    problem definition

    During the implementation of Demand Pulse a few problems came to light. The production plans Graminae  made were based on very general sales averages which caused insufficient preparedness for the demand swings. Due to Graminae's strict regulations with regards to their production plans reactions to strongly increasing or declining sales often came too late, resulting in unstable inventory levels. Demand Pulse was implemented in order to ensure that Graminae would recieve signals of changing demand that could  be used as an aid, alongside the existing production plans.

    By not only planning for future demand, but also reacting to it in realtime our production process finally stabilized
    - Graminae -


    After implementing Demand Pulse, Graminae received timely signals of change demand patterns. The DP analysis ensured that the right production orders we produced at the right times with a consistent production volume. Graminae saw a large reduction in the variance of their inventory level fluctiations  (groene lijn in grafiek) than before (rode lijn), leading to a much more predictable production process.