Manugistics NetWORKS Strategy 6.2

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Manugistics NetWORKS Strategy 6.2

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Introduction

• A strategic decision support tool
• Permits benchmarking and optimization of
  existing and prospective supply chains
• Support for network design, network utilization,
  and resource utilization analyses

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Introduction (continued)

• Net WORKS Strategy is a module in a suite of
  enterprise profit optimization products from
  Manugistics.
• The software employs proprietary database
  structures and tools to interact with the
  databases.
• Other Manugistics modules are

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Other Manugistics Products

• NetWORKS Demand
• NetWORKS Fulfillment
• NetWORKS Procurement
• NetWORKS Transport
• NetWORKS Collaborate
• NetWORKS Sequencing

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Software Architecture and Structure

• NetWORKS Strategy 6.2 uses a Server Client
  Networked Architecture
• Fat Server
• Stores object oriented databases
• Runs the model processes
• Manages the Manugistics domains
• Thin clients
• Interacts with data objects
• Initiates model processes
• Displays outputs of Optimizer output

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NetWORKS Strategy 7.0

• Scheduled for release fall 02.
• Transitioning to a Fat Client Thin Server Web
  Enabled Architecture in Version 7.0 scheduled for
  release later this year.
• The new version will use relational databases
  rather than proprietary object oriented
  databases.

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Currently Supported Operating Systems and
Platforms

• Server
• Unix
• Windows NT, Windows 2000 Professional
• Clients
• Unix based
• Windows 98, Windows NT, Windows 2000
  Professional, Windows XP(?)

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Fundamental Tasks We Will Cover

• Installing the server
• Installing the client
• Administering the system
• Scoping an analysis
• Inputting data and relationships
• Troubleshooting
• Analyzing and generating reports
• Interpreting reports

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Optimizing the Supply Chain

• Optimizing - Achieving the best possible solution
  to a problem in terms of a specified objective
  function subject to model inputs.
• The objective function can either be profit
  maximization or cost minimization.
• Optimum is defined subject to a set of
  constraints and the input data.
• LP or MIP solutions to the Optimization problem.

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Revenues and Costs Data

• Selling prices
• Purchase costs of raw materials
• Transportation Costs
• Manufacturing Costs
• Storage Costs
• Resource Costs
• Taxes/ Tariffs
• Stock out Costs

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Constraints

• Manufacturing capacity
• Storage Space
• Transportation and handling capacity
• Throughput capacity
• Inventory levels
• Sourcing restrictions
• Pre-build limitations

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Why a Model?

• Across an enterprise the number of possible
  solutions is extremely large.
• An automated, systematic tool that seeks the best
  solution is valuable in supporting the decision
  making process.

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Optimization Example, LP

• Profit Guns 2 per unit, Butter 1 per unit
• 2100 units of raw material available
• Butter requires 3 units, guns require 7 units per
  unit produced
• 2400 units of machine time available
• Butter requires 8 units, guns require 3 units per
  unit produced
• 400 units of labor available
• Guns and butter require 1 unit each to produce

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Optimization Example, MIP

• Suppose that we can construct one or two plants
  to make guns and or butter and that each plant
  has a unique set of labor, machinery, and raw
  materials constraints.
• Further suppose that each plant sells their
  output into markets with different output prices
  and service requirements.
• Requires MIP as some decision variables are
  discreet.

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Real World Example

• Monsanto Corporation
• 1000s of products, 1000s of resources, hundreds
  of suppliers, thousands of customers, world-wide
  distribution.
• Millions of constraints.
• Need a model. Need a reliable, automated
  technique to solve the model.

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Class Resources

• Installation/Administration Manual
• Reference Manual
• Classroom Guide

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Using NetWORKS 6.2

• Invest some time in scoping out your analysis.
• Include just enough detail necessary to answer
  the questions being asked of you.
• Do not let the scope of your analysis expand.

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Supply Chain Model Flow Chart

• Define Problem, Objective, and Scope
• Create Calendars
• Create Items
• Create Locations
• Create Lanes
• Create Resources
• Create SKUs
• Create and Edit Processes
• Enter Costs, Prices, and Constraints

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Supply Chain Model Flow Chart

• Create a Scenario for Analysis
• Run the Optimizer
• Review the Exceptions
• Review the Solution
• Create a new analytical scenario
• Run the Optimizer
• Review the Exceptions and Solution
• Compare the Scenario Solutions

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