PGS
Parameter Generation System

The Parameter Generation System (PGS) can be utilized as a companion system to the ODM50 program, or as a stand-alone optimizer that further improves inventory utilization and control. The algorithms in the basic ODM50 allocation system are parameter-driven; PGS automatically adjusts the parameters for optimal performance based on historical demand and management objectives.

PGS uses the following techniques to generate allocation parameters that are consistent with user management strategies:

  • Historical order and sales analysis
  • Inventory and production data
  • Physical product characteristics

With the installation of PGS, basic product groups are defined. You provide company inventory management objectives for each product group. PGS applies these management policies to current inventory position and expected order demand to produce unique parameters for each stock keeping unit (SKU).

The PGS system will allow your organization to:

  • Identify which rolls should be discounted
  • Organize the product line into customizable selling "groups" (Commercial vs. Residential or High Cut Volume vs. Low Cut Volume)
  • Establish discount strategies by selling group depending upon turn rate (will discount one group when turns fall below "X", but another group when turns get below "Y").
  • Create a detailed discount report and a discount summary report
  • Identify rolls to be discounted depending upon:
    • Length and age of the roll
    • Order demand for that size roll by SKU
    • Size of the dyelot in addition to the size of the roll
  • Collect data and gain experience from developing discount strategies that will prepare you for use of our other optimizers