Phase 2. Run Safety Stock Experiment and Examine Result
In the previous
phase we imported the scenario and observed the service level in
the statistics gathered by the Simulation experiment.
In this phase we will:
the Safety stock estimation
- Run the safety stock
- Analyze the
- Export the result
with the offered safety stock to a new SIM scenario
- Check the service
level with the offered safety stock
to the Experiments
section and select Safety stock
estimation experiment. You will be taken to the experiment's view with its parameters. We are interested
in the following parameters:
of replications - replications are used to improve
representability of the experiment run, since demand is set to
that completing the experiment
with replications takes a bit more
service level, % - we will assume that 98% is
the service level that we would like to reach.
- Leave the default experiment settings and run the
experiment by clicking Run. Experiment
execution will take some time.
- Observe the final results. When the experiment is
completed, you will be taken to the Result
tab containing the results.
Let us analyze the received
the received results
- Navigate to the Safety Stock
tab below the experiment view. The tab contains the Safety
Stock in Product Units table, which shows the amount of
products (per DC and per
replication) that must be kept as
- Filter the data by typing Amsterdam
in the filter field below the Object
column name. This will allow us to see the offered safety stock amount
per replication for this DC.
The actual safety stock is
calculated as mean value, i.e. by adding the received safety stock
amounts from each replication and dividing the resulting value by the
number of replications (841.48
bicycles in case of Amsterdam).
- Navigate to the DC Amsterdam
tab below the Safety Stock Estimation
tab. It contains a histogram, showing the amount of safety stock
required in certain % of time. For example: safety stock of 820
bicycles is required in 20% of time.
- In the same way observe the offered data for DC Nijmegen and DC
The received result can be converted to a new scenario that
will be a complete copy of the existing scenario plus the adjusted
result to a scenario
- Right-click Result
in the Safety stock estimation
branch. A pop-up menu will
- Click Convert to SIM scenario
A new Gazelle Factory SSE with safety
sock scenario will be created. You will be instantly taken
Supply chain of the new scenario must perform better, since
updated inventory policies. Let us observe the new policies and run the
Observe inventory policies
We have observed the updated data of the scenario, and we may now run
the Simulation experiment to see if the changes have improved the
- Navigate to the Inventory
table of the new Gazelle Factory SSE
with safety stock scenario. As you can see it now contains
6 records. Let us take a closer look at the changes:
- The old policies are grayed out.
- The new policies are of new type. DCs are now
using Min-max policy with safety stock
to replenish their inventories.
- The offered safety stock amount is added to the new
policies. You can see it in the Policy
- The initial stock has increased.
experiment and observe the result
In the same way you may estimate the safety stock amount for the Desired service level
- Navigate to the Simulation
experiment and click the
toolbar Run in virtual time mode without animation button.
The experiment will
be completed within a few seconds.
- Now examine
the gathered statistics. We can see that the amount of lost orders has
decreased and the service level has increased.
Let us change the data visualization type for the Service Level by Orders element to
have a better understanding of the service level that we
- Click the Change
button in the top-right corner of the Service
Level by Orders element to open the Properties
Now click Table
in the Preview
section to have the data displayed
in tabular form (in rows
Click OK to
close the dialog box and observe the service level.
As you can see, the lowest service level is 0.98. That is exactly what we've aimed for.
With the last step we have successfully completed the
Safety stock estimation experiment tutorial.
1. Import scenario and check service level