Within supply planning, there are considerable options with regard to the design of production plans with maximum profit margin. Possibilities to optimise margins result from:
Enabled by the described degrees of freedom, costs are assigned that can still be influenced by planning and control measures. Costs which can be controlled are, among others:
Time series simulations allow – in addition to common simulations for assessing the question of “make versus buy decisions” – to include currency or raw material hedging transactions to the optimisation processes. Whereas with “make versus buy” a preliminary decision is taken, hedging options enable to react more flexibly to later market changes, depending on one’s own production technology. An additional choice arises from letting a hedge option expire in the event of changing conditions.
Software-supported margin optimisation allows to integrate both, planning (order situation, available capacities, etc.) and commercial information (prices, exchange rates, transport costs) into the planning run. Different what-if scenarios can thus be calculated holistically and simultaneously and compared by using suitable key figures.