Supply Chain Planning (SCP) Model

Definition

The SCP model is the basis for all supply chain planning activities in M3 Supply Chain Planner. The model must clearly represent the nature of the supply chain.

The SCP model is built upon the following elements:

  • Buckets (time intervals such as days, weeks and months)
  • Startup inventory (projected on-hand balance at the first bucket in the optimization)
  • Node network (consisting of node and node distribution relations)
  • SCP item groups or items
  • Supply processes (for production and purchase)
  • Network capabilities (describe where it is possible to purchase, distribute, produce and stock items)
  • Costs for purchasing, manufacturing, inventory handling and distribution
  • Resource capacities
  • Penalties (maintained locally in SCP).

Uses

The SCP model is used for optimization and simulation in SCP. Model data can be extracted from M3 Business Engine and imported to SCP, where you generate a model database. You can create additional model data in SCP. Another option is to create a complete model in SCP if you choose to use it as a stand-alone tool.