Needs

The project aimed to identify algorithms to optimize the warehouse (managed by kanban according to the “lean” methodology), make internal logistics more efficient while simultaneously increasing customer service.

The scenario imposed constraints on the mitigation of production downtime caused by inventories not aligned with production needs and the improvement of production scheduling for a more efficient management of resources.

Exprivia Solution

Exprivia has adopted a multidisciplinary approach, using Artificial Intelligence techniques to identify anomalous orders, and has also used statistical simulations to optimize stock policies and kanban management.

In particular, the creation of analytical models based on the study of time series (coinciding with the consumption of production materials), has made it possible to identify those particularly “high rotational” materials for which a logic of evolution of the classic kanban methodology has been implemented, offering a series of insights to support production planning and the stock manager.

In addition, statistical simulations based on the Monte Carlo technique were used to provide What-If Analysis capable of comparing the two scenarios, i.e. inventory management with and without “jumbo orders”, which represent peaks in semi-finished product requirements that occur without warning.

An integrated platform has been implemented to effectively manage “jumbo” orders that require a large amount of material and that require ad-hoc manufacturing processes, with a specific dashboard to monitor performance and results.

Technologies used include Docker for consistent application management, a Python stack for advanced machine learning algorithms, and Grafana for real-time data visualization.

Results

Thanks to the implementation of Smart Material Planning, MASTER ITALY has achieved extraordinary results:

• Minimization of production downtime, ensuring unprecedented operational continuity.
• Improved planning, with an increase in the scheduling capacity of production activities.
• Optimization of stocks with reduction of kanbans in supermarket warehouses.

The Smart Material Planning project demonstrated how technological innovation can transform the supply chain.

Exprivia has provided MASTER ITALY with the necessary tools to optimize processes, reduce costs and improve overall efficiency. With this solution, MASTER ITALY has positioned itself in a competitive context, ready to face the volatility of the modern market.