What is the difference in how On-Demand calculates lot sizes versus traditional APS, ERP, MRP?
A. These traditional applications typically derive lot sizes and target inventories using a simple EOQ calculation or other similar approach. Actual customer demand is considered, but since APS can not model the factory run rules, its approach to capacity is rudimentary at best. Typically, once the lot sizes and target inventory levels are set they are not changed for years. The approach used by On-Demand is different. On-Demand calculates lot sizes and target inventories using proven lean methodologies which consider product demand as well as the physical factory production capabilities. Factory information, such as alternate work center routings, changeover matrices, sequencing, holidays, operating hours,etc. are considered. By using the latest demand and operating parameters, the factory can always ensure that they are operating their business with the optimal lot sizes and target inventory levels. On-Demand is flexible in how often it calculates these parameters allowing you to per
