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Categorise the envelopes

Categorise the envelopes. Sydney Team. Honeywell?. Schedules. Actuals. Demand driven supply chain model. T1. indicates demand by product by channel Pipeline envelope example with exchanges (A - B) Rack demand at Terminals (T 1 …… T N ). T4. T3. T2. T2. T5. Other back demand.

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Categorise the envelopes

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  1. Categorise the envelopes

  2. Sydney Team Honeywell? Schedules Actuals Demand driven supply chain model T1 • indicates demand by product by channel • Pipeline envelope example • with exchanges (A - B) • Rack demand at Terminals (T1 …… TN) T4 T3 T2 T2 T5 Other back demand B exchange payback out T6 A exchange supply in T7 Current linear programme Plant Remainder is Zone 2 Actuals Schedules Net demand on plant by product

  3. The demand view No Contract Contract A Firm Categorise each zone D B C E Discretionary

  4. Achieving the SCITe SCM vision Guiding Principles • Solve the problem along a connected supply chain network - crude, feedstocks, products • One key is dependent vs independent supply demand data points from the total population • Define solution set where points depend on each other - independent of / or from the remainder • We are trying to solve the crude / feedstock allocation problem in / out of I2 or any APS solution • Need reliable, mathematically correct way to accomplish this • Stay aligned throughout process Key points 1. Realistic expectations important 2. All APS will provide some characteristics of solution 3. Integration is important 4. Effective implementation is the goal

  5. APS Concepts • Row is 20/80 efficient means of doing it • Improving SCM process is not rocket science … but • Getting it to stick and managing complexity is difficult

  6. Picking a scenario Global View Zone 1 Zone 2 Zone 3 Zone 4 Zone 5 Envelope(s) Scenario 2 Refinery 1 Mktg 1 Mktg 2 Refinery 2 Refinery 5 Scenario 1 Envelope(s) Scenario 3 Refinery 3 Merchant or spot market outlet Refinery 4

  7. Picking a scenario envelope 1. Complex demand pattern • Discretionary • Unbranded • Hypermarket 2. Multiple transport modes • Pipeline • Coastal marine • Road (bulk) - not secondary • Terminal / depot relationships 3. Mixed supply pattern • Crude • Feedstocks and intermediates • Products 4. Competing number of options • Cojoint production • Exchanges • Tolling • To test APS software need true case…. Characteristics of all envelopes - group to get a few

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