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Business Constraints Supported by Convect AI's IBP

Businesses operate in dynamic environments where disruptions, demand shifts, and supply variations are commonplace. Convect AI's Integrated Business Planning (IBP) software offers the sophisticated capability to manage these challenges by incorporating a wide array of business constraints across production, transportation, and procurement. These constraints provide businesses with the agility to respond to real-world scenarios, ensuring that plans remain robust, resilient, and optimized.

Production Constraints

The production process is the engine of any manufacturing business, and Convect AI’s IBP software provides an extensive suite of constraints to fine-tune this engine. These constraints help ensure that production plans are not only efficient but also aligned with operational realities.

  1. Production Capacity:

    • Upper Limit: Define the maximum capacity of a production line based on available operational hours per day and the production rate (yield per hour). This ensures that production plans remain realistic and do not exceed physical or operational limits.
    • Lower Limit: Some production lines must operate for a minimum amount of time due to setup costs or contractual obligations. Convect AI’s IBP lets you specify these lower limits to ensure that lines run as needed.

  2. Facility-Product Compatibility:

    • Specify which facilities can produce which products. This ensures that production plans respect the capabilities and specialties of each facility.

  3. Minimum and Maximum Product Quantities:

    • There are cases where certain products must be produced regardless of immediate customer demand, such as during the launch of a new product or when maintaining the availability of a strategic product. Convect AI allows you to set both minimum and maximum production quantities, ensuring that your product mix aligns with both strategic objectives and market demands.

  4. Line-Specific Product Limits:

    • You can place minimum and maximum quantity constraints on products at specific production lines.

  5. Production Cadence:

    • Some products may only be produced on specific days or every n days, due to supply chain, resource availability, or process requirements. The IBP software lets you set these cadence constraints, ensuring production schedules match operational realities.

  6. Setup Time:

    • Every product changeover on a production line takes time. Convect AI’s IBP software accounts for setup times, ensuring that the transition between products is planned effectively, minimizing downtime and inefficiencies.

Transportation Constraints

The flow of goods from production facilities to distribution centers and customers is another critical aspect of supply chain planning. Convect AI’s IBP software incorporates a variety of constraints to ensure transportation plans are both efficient and responsive to changing conditions.

  1. Turning On/Off Transportation Routes:

    • In the face of disruptions like natural disasters, road closures, or other unforeseen events, certain routes may become unavailable. With the ability to turn transportation routes on or off, Convect AI’s IBP software adapts quickly, finding alternative pathways to ensure that demand is still met.

  2. Minimum Transportation Quantity:

    • Convect AI allows you to set minimum transportation quantities to ensure that shipments are economically viable.

  3. Product-Specific Transportation Rules:

    • Some products may have restrictions on which routes or modes of transport can be used. For example, perishable goods might require refrigerated transportation, or hazardous materials may be restricted from certain routes.

  4. Inter-Region Transfer Limits:

    • To manage regional demand fluctuations, inter-region transfer limits can be set, ensuring that only a certain amount of product is transferred between regions. This helps maintain regional inventory levels and manage transportation costs effectively.

Procurement Constraints

Procurement is often the most vulnerable part of the supply chain, subject to supply disruptions, pricing volatility, and lead time variations. Convect AI’s IBP software offers procurement constraints to help you manage these uncertainties.

  1. Allow New Buy:
    • During supply disruptions or shortages, it may be necessary to temporarily halt the procurement of certain raw materials or products. Convect AI’s IBP software lets you turn on or off the "Allow New Buy" flag at the product or raw material level. For instance, if a raw material becomes unavailable, you can turn off this flag, signaling that only current inventory can be used. The software will then adjust production plans accordingly, optimizing for the available supply to ensure continuity.

The Ultimate Tool for Managing Constraints

The power of Convect AI’s IBP software lies in its ability to handle a diverse range of constraints seamlessly, providing an adaptable and comprehensive planning solution. By allowing you to set, modify, and adapt constraints across production, transportation, and procurement, the software ensures that your entire supply chain operates within realistic boundaries while optimizing performance.

  • Flexible Planning: Easily adapt to changes, such as shifting production schedules, rerouting transportation, or adjusting procurement strategies in real time.
  • Enhanced Decision-Making: With constraint-driven planning, you gain insights into how different factors impact your supply chain, enabling you to make more informed, strategic decisions.
  • Optimized Resource Utilization: Ensure that every resource—whether it’s production capacity, transportation assets, or raw materials—is used efficiently, reducing waste and improving profitability.

Conclusion

For a truly adaptive and responsive planning experience, Convect AI’s IBP software offers the flexibility you need to turn constraints into opportunities, helping your business thrive in an ever-changing world. Sign up today to see how Convect AI can transform your supply chain planning and management.