Phase 1. Import Scenario and Check Service Level

In this phase we will obtain the input data and observe the service level. You may use your own input data as the basis for our experiment, or you may fetch and import our scenario.

Either way, you should have a supply chain model containing the following parameters: 

Download and import the scenario

  1. Fetch the scenario. No internet connection is required, since the scenario is supplied with ALX.
  2. Import the downloaded scenario. The GIS map will appear showing the content of the imported scenario.
  3. Explore the connections by clicking the Show filters button to open the filter options, and then clicking the  Show connections button.

The imported scenario contains a supply chain with 50 customers in the largest cities of the Netherlands, 3 distribution centers, and the Royal Gazelle bicycle factory, as the supplier. 

Let us run the Simulation experiment and observe the gathered statistics.

Run the Simulation experiment and examine the result

  1. Click the Simulation experiment item in the Experiments section.

    You will be taken to the Simulation experiment view with the current experiment's settings. You will see that the experiment is already configured (the statistics are defined and located in the dashboard).
  2. Click the toolbar Run in virtual time mode without animation button to run the experiment at max speed without displaying the GIS map. The experiment will be completed within a few seconds.
  3. Examine the gathered statistics. You will see that the service level is not ideal because we've lost significant number of orders within the simulation period.

To avoid loss of orders and thus improve the service level we need to adjust the inventory policy parameters. One of the options is to provide each DC with a safety stock that will help them maintain the required level of products. This can be done in any of the following ways:

We will stick to the latter option.

First, let us examine the current parameters of the policies.

Observe current parameters of the inventory policies
  1. Click the Data item in the Experiments section to return to the project tree.
  2. Proceed to the list of tables in the lower left part of ALX workspace and click the Inventory table. You will see three the Min-max policy inventory policies, one for each DC. These policies must be updated to improve the service level.

We have completed the first phase of this tutorial. We have examined the statistics and observed the inventory policies that must be adjusted. 

Click the link below to proceed to Phase 2 of this tutorial, in which we will run the Safety stock experiment, observe its results and convert them to a new scenario.


  Safety stock estimation experiment Tutorial | Phase 2. Run Safety stock experiment and examine result