ASR Compliant Software

To be fully ASR Compliant, software needs to support the Four ASR components:

1. Strategic Inventory Positioning

2. Dynamic Buffer Level Profile … setting and maintenance

3. Pull-based Demand Generation

4. Highly visible and collaborative execution.

Several software packages (typically, that work alongside popular ERP software) provide some degree of  support for some of the elements, mostly:

• The ability to set some parameters for Stock Buffers
• To generate demands for replenishment based on the rate of actual consumption
• Some support for the execution of replenishment, including priority management based on buffer penetration

These are typically in support of the Theory of Constraints (TOC) Distribution and Supply Chain solution, aimed at establishing stock buffers of finished products at the plant warehouse and in some cases at client warehouses, and suggesting replenishment orders as actual consumption uses up the stock. Replenishment orders may be to replenish the downstream stock from the plant warehouse; or, to replenish the plant warehouse from production. The Buffer Management may also be applied to Materials.

The major limitation on these is the total lack of support for Strategic Inventory Positioning, which of course is the pivotal step in ASR. Without a solid basis for the decision as to where to establish stock buffers in a complex suite of Bills of Material, there IS no ASR.

Other limitations include no provision for buffering component parts (versus finished goods); no provision for seasonal Buffer Profiles or distinct profiles to recognize consumption trends or different levels of variability in supply or demand; and limited execution support.

There is currently only one software package designed specifically for ASR; Replenishment+™, by Constraints Management Group (CMG).

This software was developed by CMG’s technical development team as CMG partners, consultants, and associates developed and refined the ASR concept over several years in response to client needs.

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