ECLIPS

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Some History

• MÖBIUS has been founded in 1997 as a spin-off of
  the university of Ghent
• It has previous experience with research projects
  partially funded by the Flemish Government
• The early conception of ECLIPS scale up
  Research Efforts
• European Project
• Involving European Partners
• Supporting European Expansion MÖBIUS

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Some History

• EU Sixth Framework Program 2002-2006
• Research funding (50 for private enterprises,
  100 for academics)
• Broad number of areas (Nanotechnology, IT, Life
  Sciences, )
• Official Calls for Requests zoom in on thematic
  priorities
• Proposals to be addressed by European Consortia
• STREPS Specific Targeted Research Project (1
  4 Mi Eur)
• IP Integrated Projects (10 30 Mi Eur)

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Some History

• Its more difficult than it looks

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Some History

• Its more difficult than it looks

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Supply Chain Management
Inventory
Supply
Demand
Distribution
Manufacturing
Tactical
SC Screening
Process Analysis Design
Operational
Tooling Advice
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Supply Chain Challenges

• MI 1 Reduce inventory investment while
  globalizing supply chains

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Supply Chain Challenges

• MI 2 Deliver ever more customized and up-to-date
  products while reducing inventory investments

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How Companies Struggle

• Lets try to  squeeze  costs

Anecdote
In a recent project we discovered the
following In a bid to reduce transportation and
warehousing costs, the transport department
decided to skip the European Distribution Centre
for replenishing DCs in Southern Europe. The
corresponding net increase in inventory
investment was 30 Mi Euro
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Research Proposal

• We try to innovate in 2 domains Planning
  Forecasting
• The Planning Domain
• Problem statement
• Planning Algorithms have become very advanced /
  complex
• They allow for optimizing parts of the supply
  chain

Stadtler, H., Kilger, C., Supply Chain Management
and Advanced Planning Concepts, Models, Software
and Case Studies, 2002
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Research Proposal

• The Planning Domain
• But, how advanced they may be, they do not tackle
  some basic supply chain problems like the well
  known bullwhip effect

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Research Proposal

• The Planning Domain
• Our Proposal Use Multi-Echelon Cyclic Planning
  for planning Mature Products
• Example of a Multi-Echelon Supply Chain

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Research Proposal

• The Planning Domain
• Our Proposal Use Multi-Echelon Cyclic Planning
  for planning Mature Products
• In a cyclic plan, the time between two production
  orders is constant, this can be illustrated in
  using a wheel
• The following figure shows cyclic plans on each
  of the processes

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Research Proposal

• The Planning Domain
• Our Proposal Use Multi-Echelon Cyclic Planning
  for planning Mature Products
• It allows to synchronize steps and reduce buffer
  stocks
• The optimization takes into account inventory and
  setup costs of all stages and optimizes the
  overall supply chain cost

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Research Proposal

• The Forecasting Domain
• Problem statement
• Part 1 Traditional techniques like time series
  are not well suited for forecasting new products
• Part 2 Manual forecasting for a large number of
  items tends to lead to poor performance
• As a result, forecasts for new products are often
• Static, we dont learn from actual sales
• Optimistic, sales people tend to have an upside
  bias

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Research Proposal

• The Forecasting Domain
• We propose to learn from historical product
  introductions
• Example Input Historical Product Introductions

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Research Proposal

• The Forecasting Domain
• We propose to learn from historical product
  introductions
• Example Output Clusters of Typical Product
  Introductions

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Research Proposal

• The Forecasting Domain
• We propose to learn from historical product
  introductions
• The ECLIPS forecasting method for new products

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Research Proposal
Task Structure of Work Package 2 Concept
Development

• The two main complexities we try to tackle
• Multi-Echelon, Holistic optimization of the
  Supply Chain
• The different phases of a product lifecycle and
  their integration

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Project Structure

• 12 Quarters / 5 Work Packages / 3,5 Mi Euro / 387
  mm
• Today End Q3
• End Phase 1 Concept Development
• Start Software Development
• Tomorrow
• Start Simulation Testing

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6 PARTNERS - 1 PROJECT
Hunstman Advanced Materials (Eu) Real-Life Supply
Chain Chemicals
Pliva-Lachema Diagnostika (Cz) Real-Life Supply
Chain Pharmaceuticals
Supply Chain Expertise Coordinator
Riga Technical University (Lv) Academic Expertise
Eurodecision (Fr) Optimization Expertise
Software Integration
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Serving Tomorrows Business
Todays Business Challenges consist of
ECLIPS breakthrough target
30 Inventory Reduction with Improved Customer
Service
Top level executives from top level companies
advise the project team in the Advisory board