Upgraded Inventory Management Tool Will Help Metal Suppliers Remain Profitable in Tough Economic Times

PSI is offering expanded functions for inventory-optimized production planning and evaluation of plans with the new release of PSImetals APS. Companies in the metal industry profit, in particular in the current financial crisis, from the opportunity to be able to quickly modify corporate goals, for instance, throughput/cost optimization, to coincide with the production goals. With its holistic inventory management, PSImetals makes it possible to accurately derive the specifications and key performance indicators (KPI) for the operative production planning from the corporate guidelines.

Stock volumes and structures are the proven parameters for coordinating the cross-phase material flow for planning steel production. Beside the industry standards such as stock minimization and control of the number of days of stock throughout the supply chain, PSImetals provides a market innovation with the stock-optimized production planning function. With the new PSImetals APS, stocks are not only optimized, but defined as conditions for optimization. The cross-phase dispatching of orders is possible while maintaining the minimum and maximum levels of stock. This reduces scheduling results that are not based on practical volumes and structures of stocks.

How the essential operative corporate goals are implemented in the plan can be checked in the associated KPI board. Goals and limits can be configured as desired and allow for a flexible decision-making tool which makes it possible to adapt the production plan to the current corporate goals at any time.

The new inventory management is an integral component of the optimization model in PSImetals and combines complex algorithmic processes with the practical knowledge of the planner as he/she would usually run the factory. The PSI subsidiary PSI BT is amongst the world’s leading providers of software for production management in the metal industry. PSImetals supports the entire value-added chain process of the metal production and production logistics, from planning, controlling and analysis of the supply chain execution.

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