How does i2 work?
I2 splits SCM into three modules: * Demand Planning. As far as I recall i2 implementations use relatively simple linear functions to predict future demand based on past demand. This is typical for the industry and does work fine. * Supply Planning Supply Planning is the optimized matching of existing resources (supply) to the demand. In our own system we called this ‘making supply commitments’. The system does compute a plan how to use the resources and users typically get some kind of monitor/ management tool that allows them to make modifications. Such modifications usually are necessary because the planning engine does not know everything about the customers (priority customers!) or because of a last minute change in demand. * Demand Fulfillment That’s the fulfillment of demand as the planned future data becomes present. What speaks for i2? If you are a corporation and you have no supply chain management system yet, chances are, that you managers are doing their planning with Excel
