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Problem Types

Optessa MLP can be applied to a wide variety of problems. These are variously described as planning or high level scheduling problems in manufacturing companies.

Optessa MLP has the ability to generate the “guaranteed” optimal solution for planning problems, such as:
  • Evaluate and generate an order set that maximizes capacity utilization or minimizes parts and finished goods inventory.
  • Evaluate and generate an order set that maximizes a cost function that combines order priorities with capacity utilization.
  • Select an order set / move orders across months to generate an order set that minimizes the need for capacity adjustment.
  • Modify the order counts in an order set so as to satisfy all capacity and inventory constraints.
  • Minimize capacity addition (e.g., overtime) so as to satisfy all due date / inventory requirements for an order set.
  • Evaluate and generate an order set across multiple weeks to smooth capacity usage.
Following are some examples of problems that Optessa MLP has been designed to solve.

Order selection problem

This is an important problem for manufacturers of configured products in volumes. An obvious example is the auto industry; other industries including power / farm / industrial equipment, semiconductor face the same problem.



The objective is to select, from a large pool of actual or “fixed” orders, a subset of orders while satisfying a large number of constraints and required allocations.

Optessa MLP will maximize the number of orders selected.

Multi-plant and multi-line planning by time bins

Given a demand forecast and a set of critical capacity and marketing constraints, assign the forecast to multiple plants / lines and to multiple future time bins. The time bins can range from days, weeks, months to years.

The critical capacity constraints can include material, plant and labor, MPL, related constraints from:
  • Assembly / finished product plants
  • In-house facilities
  • Supplier or outsourced facilities
Marketing constraints include:
  • Regional and dealer allocations
  • Desirable “equipment” or “feature” mixes
Optessa MLP will provide an optimal balance between demand and capacity utilization at all levels, while minimizing constraint violations.

Forecast order generation

Forecast order generation, FOG, is a key input step to the planning process in the auto and other industries. The FOG process has to consider:
  • Order templates
  • Products and options offered: configuration rules 
  • Critical MPL constraints
The number of valid product combinations can be very large. For example, some models of cars can have millions of combinations. An effective FOG must be able to generate order sets, in the tens or hundreds of thousands, given the above restrictions.

Optessa MLP has been demonstrated to be a highly effective FOG tool with rapid execution times. By using Optessa MLP for FOG, a smaller and more effective set of forecast orders can be generated as input to the planning. In comparison, a conventional demand planning system would be required to generate a considerably larger set of forecast orders to be equally effective for planning.

 

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