Supply Chain Models:

Ventana supply chain models focus on distribution network service and costs, including the near- and long-term effects of shortages and overstock. they are used to determine optimal ordering and replenishment policy at each level, evaluate options in logistics descipline and branch procedures, and test system changes from order rules to entire network re-designs before implementation.

• Example:
                 Aircraft fleet sparing.
                 Retail grocery stocking.

Aircraft fleet sparing

ventana, working with a major defense contractor, developed a system to manage logistics for a US air force fleet of aircraft.

The air force recognized that the ongonig task of finding and fixing data errors was the most challenging aspect of thier logistics management activities. to meet the challenge and logistics developed a data cleaning and logistics optimization syste. the system combines a central database that the facilitates changing doucumenting, resolving differences and maintaining accountability for changes in the data, with a model of how parts status affects logistics system performance. by comparing model preductions to measured performance and automatically tracing the parts most responsible for the diffrence, the system indentifies the data errors with highest impact on performance.

Evidence for the effectiveness of the system has emerged from real world tests. in a key exercise in December, 2000, twenty-five asset managers were relived of normal duties for a week to clean the fleet data using conventional technicques. after this excercise, it took an analyst only five minutes with the ventana system to sort through data on tens of thousands of parts and find twenty new errors, each of which was more significant to logistics performance than the errors identified conventionally. Most of the errors located the conventional way would have made little difference in calculating optimal number hand, without first correcting the twenty additional errors, any asset optimization would have been ludicrously inaccurate.

Retail grocery stocking

For a larg and very successful grocery chain , ventana evaluated the company's seals forecasting system, which the retailer belived to be state-of-the-art. using historical sales data with a simulation model, ventana benchmarked existing forecasting skill for the first time, and examined the role of forecastes in the client's overall product distribution system. ventana showed that unjustified,but widely held, textbook prescriptions about customer behavior and inventory management were limiting the retailer's profitabilty, and found several opportunities to improve operational performance by re-designing the clint's logistics algorithms and supply system policies. the client tested the new policies, first by simulation and then in multi-store trials, and found they could reduce system-wide inventory by 50% without lowering service levels. the clint went on to implement ventana algorithms throughout the company.

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