Simulation Configurations

Configure supply simulation parameters

Simulation Configurations

Configure your supply simulation to match your business rules, safety stock policies, and planning requirements.

Configuration Overview

Supply simulation uses multiple configuration sources:

Configuration	Purpose
Safety Stock	Minimum inventory levels
Lead Times	Transit and production times
Fulfillment Mapping	Which warehouses serve which channels
Supplier Capabilities	What suppliers can provide

Safety Stock Configuration

What is Safety Stock?

Safety stock is buffer inventory to protect against:

• Demand variability
• Supply delays
• Forecast errors

Setting Safety Stock

Configure at the SKU/warehouse level:

1. Navigate to Inventory Settings

   Go to Settings → Inventory Forecast

2. Find Safety Stock Section

   Locate safety stock configuration

3. Set Values

   Define safety stock by:

   • Fixed quantity
   • Days of coverage
   • Percentage of demand
4. Save

   Apply configuration

Safety Stock Methods

Method	Description	Best For
Fixed Quantity	Specific unit count	Stable demand
Days of Cover	X days of average demand	Variable demand
Percentage	% of forecast period demand	Seasonal products

Example Configuration

SKU	Warehouse	Method	Value
SKU-001	Main	Days of Cover	14 days
SKU-002	Main	Fixed	500 units
SKU-003	Regional	Percentage	20%

Lead Time Configuration

Types of Lead Times

Type	Description
Supplier Lead Time	Time from order to receipt
Transit Lead Time	Shipping time between locations
Production Lead Time	Manufacturing time

Configuring Lead Times

Supplier Lead Times

Set at the supplier capability level:

1. Go to Inventory → Suppliers
2. Select supplier
3. View/edit capabilities
4. Set lead time per SKU

Warehouse Lead Times

Configure transit times between warehouses:

1. Go to Inventory → Warehouses
2. Access Lead Times
3. Set matrix of warehouse-to-warehouse times

See Lead Times for details.

Fulfillment Mapping

What is Fulfillment Mapping?

Defines which warehouses fulfill demand from which channels:

Channel: Shopify US → Fulfilled by: Main Warehouse
Channel: Amazon → Fulfilled by: Amazon FBA
Channel: Wholesale → Fulfilled by: Regional DC

Configuring Fulfillment

1. Go to Inventory Settings

   Navigate to Settings → Inventory Forecast

2. Find Fulfillment Mapping

   Locate the fulfillment configuration section

3. Map Channels to Warehouses

   For each channel, select fulfilling warehouse(s)

4. Save

   Apply the mapping

Multiple Fulfillment Options

A channel can be fulfilled by multiple warehouses:

Channel	Primary	Secondary
Website US	East DC	West DC
Website CA	Canada DC	East DC

Supplier Configuration

Supplier Capabilities

Configure what each supplier can provide:

Setting	Description
SKUs	Which products they supply
Lead Time	Days to receive
Cost	Unit cost
MOQ	Minimum order quantity
Capacity	Maximum order quantity

Setting Capabilities

1. Go to Suppliers

   Navigate to Inventory → Suppliers

2. Select Supplier

   Choose supplier to configure

3. Add Capabilities

   For each SKU they provide:

   • Set lead time
   • Set costs
   • Set MOQ/capacity
4. Save

   Apply configuration

Simulation Parameters

Time Horizon

Configure how far into the future to simulate:

Setting	Typical Value	Use Case
Short	30 days	Tactical planning
Medium	90 days	Standard planning
Long	180+ days	Strategic planning

Demand Source

Which forecast to use:

Option	Description
Selected Model	Currently active forecast model
Specific Model	Choose a particular model
Manual Override	Use custom forecast data

Overstock Configuration

What is Overstock?

Overstock threshold defines when inventory is excessive:

• Ties up capital
• Risk of obsolescence
• Storage costs

Setting Overstock Thresholds

Configure overstock alerts:

Method	Description
Days of Cover	Alert if > X days inventory
Multiple of Target	Alert if > X times safety stock

Configuration Best Practices

Start Conservative

Begin with higher safety stocks:

• Learn demand patterns
• Understand variability
• Reduce gradually

Segment by Risk

Different settings for different products:

• Critical items: higher safety stock
• Long lead time: higher buffer
• Stable demand: lower buffer

Review Regularly

Update configurations as business changes:

• New suppliers
• Changed lead times
• Demand pattern shifts

Document Decisions

Keep records of why settings were chosen:

• Helps future adjustments
• Enables learning

Configuration Impact

How Settings Affect Results

Configuration	Simulation Impact
Higher Safety Stock	Earlier reorder, more inventory
Longer Lead Times	Earlier order dates
More Fulfillment Options	Flexible sourcing recommendations
Lower MOQ	Smaller, more frequent orders

Testing Configuration Changes

Before applying configuration changes:

1. Run simulation with current settings
2. Note baseline results
3. Run with new settings
4. Compare differences
5. Validate makes sense

Troubleshooting

Orders Recommended Too Late

Possible causes:

• Lead times not configured
• Safety stock too low
• Missing supplier capabilities

Solutions:

1. Verify lead time configuration
2. Review safety stock settings
3. Check supplier setup

Too Many Recommendations

Possible causes:

• Safety stock too high
• Overstock threshold too low
• Many small orders (low MOQ)

Solutions:

1. Review safety stock levels
2. Adjust overstock thresholds
3. Check MOQ settings

Next Steps

Running Simulations

Execute simulations

Charts

Visualize results

What-If Scenarios

Test scenarios

Lead Times

Configure lead times