Details of the ASR Solution
Going Into Depth with the ASR Solution
There are 4 major elements to Actively Synchronized Replenishment (ASR)
- Strategic Inventory Positioning – literally, where in the Bill of Material structure, or where in the supply chain, should we hold inventory to provide the maximum benefit to performance? This is a crucial first step for Actively Synchronized Replenishment ASR.
- Dynamic Buffer Level Profiling – establishing the “profiles” for the Buffer Stock, such that parts with high variability and high volume (for example) will have a different profile than parts with high volume and low variability, or parts with low volume and high variability, etc.
- Pull-based Demand Generation – stock buffer levels are replenished as actual Demand Pull moves Buffers into their Rebuild Zones. Every order generated is assigned a due date, based on a quoted lead time or a cumulative lead time for the part.
- Highly Visible and Collaborative Execution – Execution is one of the Achilles heels of the ERP/MRP world; MRP was never intended to be an execution tool. ASR Actively Synchronized Replenishment provides strong execution support.
