Perform Kanban Simulation

Explanation

Use this activity to perform an advanced Kanban calculation using an actual demand profile. 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.

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 Onhand value.

Window

Calculate Kanbans
Kanban Circuit
Kanban Circuits

Related Window Descriptions

Calculate Kanbans
Kanban Circuit
Kanban Circuits

Procedure

  1. In either the Kanban Circuit or the Kanban Circuits window, right-click and then click Run Simulation. Alternatively, in the Calculate Kanbans window, select the Run Simulation check box.
  2. In the Initial Onhand list, select Full Kanbans if you want the system to calculate the starting supply by assuming that all Kanbans are full. Select Snapshot Within Leadtime if you want the system to use the current inventory quantity.
  3. In the Initial Kanban Quantities list, 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.
  4. If you are in the Calculate Kanbans window, select the Iterate for Stockout check box.
  5. Enter the maximum Number of Iterations for the calculation.
  6. Enter the Percent Increase, i.e., the percentage by which you want the system to increase the stock quantity with each iteration.
  7. Click OK to run the simulation.
  8. View the updated values in the Qty Net Onhand and Units Supply fields in the Demands tab of the Kanban Demand window.
  9. If desired, query for circuits with a negative Lowest Onhand value to detect a possible stockout.