Cumulative quantities (logistics)
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Cumulative Quantities means a certain concept to plan material requirements and to calculate production and delivery orders whereby material requirements are added up along a timeline for a defined time-window that can be drawn as a 'cumulative curve'. This concept is developed for serial production and mainly used in the automotive industry to plan, control and monitor production und delivery.[1]
Cumulative Quantities and Closed-Loop-Cycle
The Concept of Cumulative Quantities (CCQ) uses the feedback mechanism of a closed loop, which can be found in industrial, engineering and electronic systems. The target requirements are summarized for each time-interval and compared with the actual values for Closed-loop control. If the cumulative deviation for a certain time-interval is positive then no further order is needed, if the deviation is negative then a new order has to be calculated. To 'calmer' production and material flow you can define upper and lower tolerance boundaries and only if these boundaries are violated a renewed order is issued.
To check the entire production and material flow some 'reporting limits' can be defined at chosen Counting Point (logistics) and if a limit is exceeded a concerned 'alert' is issued. Thereafter one of the logistic stuff has to prove the reason of the 'alert' and if the reason is correct and traceable no further action is needed. But if there are mistakes in the database, data processing or in data-acquisition appropriate counter-measures are needed. Examples for mistakes or failures : wrong primary demand or bad forecasting, mistakes in Bill of Material or master data, old Master Production Schedule, no accurate data acquisition or too late, calculation mistakes, mounting of incorrect parts at assembly line
Cumulative Quantities and Counting Points
Basis of target-actual-control-loop are exactly defined Counting Point (logistics) which demarcate the next-following intervals along the supply chain.[2] The cumulative differences of next-following Counting Points show the quantities of the material items which traverse the concerned Interval and therefore we can get tranparency of the inventory of an item along the entire supply chain.
Cumulative Quantities and Supply Chain
Cumulative Quantities are a part of official EDI-formats (e.g. EDIFACT - DELFOR) that are widely use of OEM's and their suppliers in different industries. Normally the data acquisition at 'goods receipt' are used for communication between consignee and dispatcher of goods. Using the CCQ for the entire supply chain a Bullwhip effect can be avoid.[3]
See also
External links
- SAP-HELP-COM [1]
Literatur
- Wilmjakob Herlyn (2014) (in English), The Bullwhip Effect in expanded Supply Chains and the Concept of Cumulative Quantities, Berlin: epubli, pp. 513-528, ISBN 978-3-8442-9878-9
- Hans-Peter Wiendahl (2010) (in German), Betriebsorganisation für Ingenieure (7. ed.), München: Hanser, ISBN 978-3-446-41878-3
- Hermann Lödding (2008) (in German), Verfahren der Fertigungssteuerung (2. ed.), Berlin,Heidelberg: Springer, ISBN 978-3-540-76859-3.
- Paul Schönsleben (2016) (in German), Integrales Logistikmanagement (7. ed.), Berlin Heidelberg: Springer Vieweg, ISBN 978-3-662-48333-6
References
- ^ H. Lödding: Verfahren der Fertigungssteuerung. Springer Verlag, 2008, Kap. 13.
- ^ Paul Schönsleben: Integrales Logistikmanagement, Springer Vieweg Verlag, 7. Aufl., 2016, S. 308
- ^ W. Herlyn: The Bullwhip Effect in expanded Supply Chains and the Concept of Cumulative Quantities. epubli Verlag, Berlin 2014, ISBN 978-3-8442-9878-9, S. 513–528.