Running Simulations

Execute supply chain simulations to optimize inventory

Running Simulations

Supply simulation helps you understand future inventory positions and optimize replenishment decisions. Run simulations to see projected stock levels, identify potential stockouts, and generate order recommendations.

Supply simulation uses your demand forecasts, current inventory, and lead times to project future states.

What is Supply Simulation?

Supply simulation models your supply chain forward in time:

Input	How It’s Used
Current Inventory	Starting point
Demand Forecasts	Expected consumption
Lead Times	Time for orders to arrive
Open Orders	Planned replenishment
Safety Stock	Minimum stock levels

Accessing Supply Simulation

Navigate to Inventory → Supply Simulation in the sidebar.

Simulation Dashboard

Component	Description
Run Button	Execute new simulation
Date Range	Simulation time horizon
Results	Projected inventory and alerts
Charts	Visual projections

Running a Simulation

1. Navigate to Supply Simulation

   Go to Inventory → Supply Simulation

2. Configure Parameters

   Set simulation options:

   • Start date (usually today)
   • End date (planning horizon)
   • Mode (baseline or what-if)
3. Click Run

   Execute the simulation

4. Review Results

   Examine projected inventory and recommendations

Simulation Modes

Baseline Mode

Standard simulation using current data:

• Uses existing demand forecasts
• Uses configured lead times
• Uses current inventory levels
• Generates standard recommendations

What-If Mode

Scenario analysis with modified parameters:

• Adjust demand multipliers
• Modify lead times
• Test supplier constraints
• Compare against baseline

See What-If Scenarios for details.

Simulation Results

Inventory Projections

For each SKU/warehouse combination:

Metric	Description
Projected Quantity	Expected inventory over time
Stockout Date	When inventory hits zero
Coverage Days	Days of inventory remaining
Health Status	Current inventory health

Health Status Categories

Status	Meaning
Healthy	Sufficient inventory
Low Inventory	Below safety stock threshold
Out of Stock	No inventory available
Overstock	Excess inventory

Order Recommendations

Simulation generates replenishment recommendations:

Field	Description
Type	Purchase or Transfer
Source	Supplier or warehouse
Destination	Destination warehouse
SKUs	Products to order
Quantities	Recommended amounts
Order Date	When to place order
Alert Level	Urgency of order

Alert Levels

Recommendations are prioritized:

Level	Description	Action
Urgent	Stockout imminent	Order immediately
Important	Low inventory soon	Order this week
Normal	Standard replenishment	Schedule as planned

Using Simulation Results

Review Recommendations

1. Check urgent alerts first
2. Review important recommendations
3. Examine normal orders for planning

Create Orders

Convert recommendations to transactions:

1. Select Recommendation

   Choose an order recommendation

2. Review Details

   Verify quantities and timing

3. Create Draft

   Convert to draft transaction

4. Submit

   Submit when ready to execute

Bulk Operations

Create multiple orders at once:

1. Select multiple recommendations
2. Click Create Drafts
3. Review created transactions
4. Submit as needed

Simulation Frequency

When to Run

Trigger	Reason
Daily	Routine planning
After Forecast Update	New demand data
After Inventory Change	Major stock movements
Before Ordering	Validate recommendations

Automatic Runs

Tether can run simulations automatically:

• Scheduled daily runs
• Results cached for quick access
• Alerts generated proactively

Interpreting Results

Projected vs. Recommended

View	Shows
Current Projection	What happens without action
Recommended Projection	What happens with recommendations

Reading the Timeline

1. Blue line: Current inventory projection
2. Green line: Projection with recommended orders
3. Red zone: Stockout periods
4. Yellow zone: Low inventory periods

Best Practices

Run Regularly

Regular simulations catch issues early:

• Run daily or weekly
• Review results promptly
• Act on urgent alerts

Review Before Ordering

Always simulate before major orders:

• Validate quantities
• Check timing
• Identify conflicts

Use What-If for Planning

Test scenarios before decisions:

• Demand changes
• Lead time variations
• Supplier issues

Monitor Accuracy

Track simulation accuracy:

• Compare projections to actuals
• Adjust parameters as needed
• Improve forecast inputs

Troubleshooting

Simulation Not Running

Possible causes:

• Missing data (forecasts, inventory)
• Configuration issues
• System processing

Solutions:

1. Verify forecasts exist
2. Check inventory data
3. Wait for processing to complete

Unexpected Results

Possible causes:

• Outdated forecasts
• Incorrect lead times
• Missing open orders

Solutions:

1. Review input data
2. Update configurations
3. Verify open order status

Next Steps

Configurations

Configure simulation parameters

Charts

Visualize simulation results

What-If Scenarios

Run scenario analysis

Supply Plan

Manage scheduled orders