Simulated (possible) results
Proposed by using SIMPLE-System
SIMPLE-System's simulation answers the question: what would the results be if a firm would have used SIMPLE-System sooner. It is as if we relive the past period again. The simulation uses past demands to create new/different orders: using knowledge about previous periods it makes forecasts, calculates norms and simulates orders when the system recommends to do so and it simulates filling inventory after the set time of delivery. Real inventory dynamics summary is presented as a blue line, the simulated as a pink line.
The graphs and tables show that the level of inventory is reduced in simulation, if we check the individual dynamics for a separate position we see that the number and size of the periods when inventory remnant is close to zero are less (this leads to increase in sales), that the number of spikes is less, so the number of orders is less and the transportation costs are reduced.
Pharmacy
The figures and graphs below show that if this firm had used
SIMPLE-System it would:
reduce inventory: from $1,882,293 to $1,291,834
reduce deficits and improve margin sold (also through
assortment optimization): from $1,710,675 to $2,451,110
increase the number of orders, (and nevertheless an increase
in order costs)
improve the return on inventory: from 83% to 177%.
Stationery
The figures and graphs below show that if this firm had used SIMPLE-System it
would:
reduce inventory: from $97,138 to $68,348 (see also the inventory levels on the
graphs)
improve margin sold: from $423,967 to $548,299 (see the angle of the lines between
spikes)
order costs are irrelevant, the supplier pays them in this case.
improve return on inventory: from 436% to 802%.
Building materials
The figures and graphs below show that if this firm had used SIMPLE-System it
would:
reduce inventory: from $145,768 to $97,668
improve margin sold: from $254,349 to $269,946
reduce order costs (shown by spikes): from $32,616 to $25,368
improve the return on inventory: from 152% to 259%.
Building materials 2
The figures and graphs below show that if this firm had used SIMPLE-System it
would:
reduce inventory: from $239,095 to $251,417
improve margin sold: from $358,904 to $706,252
reduce order costs (shown by spikes): from $36,386 to $29,668
improve the return on inventory: from 135% to 269%.
Raw materials production
The figures and graphs below show that if this firm had used SIMPLE-System it
would:
Reduce inventory: from $56,450 to $38,819
Improve Margin sold: from $282,629 to $288,144
Reduce Order costs: from $32 to $30
improve the return on inventory: from 501% to 742%.
Drugstore
The figures and graphs below show that if this firm had used SIMPLE-System it
would:
reduce inventory: from $31,532 to $27,171
improve margin sold: from $32,273 to $42,140
reduce order costs: from $9,170 to $7,176
improve the return on inventory: from 73% to 129%.
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