Supply Chain Guru Release Notes

Supply Chain Guru
Release Notes
Version 8.4
_
Supply Chain Guru 8.4 Release Notes _
May 2016
Copyright © 2016 LLamasoft, Inc. All Rights Reserved.
PC*MILER and ALK are registered trademarks of ALK Technologies, Inc.

"Python" is a registered trademark of the Python Software Foundation.
Contents
Preface ................................................................................. 1
Related Documentation .............................................................................. 1
Customer Support...................................................................................... 1
1 Release Notes....................................................................... 3
What’s New in Version 8.4? ......................................................................... 3
Transportation Optimization ........................................................................ 4
Removal of Transportation Policies Requirement ....................................... 4
Baseline Modeling ................................................................................. 5
Baseline Modeling Rules.................................................................... 5
Baseline Shipments.......................................................................... 6
Baseline Output Shipments ............................................................... 8
Transit Override Additive Cost ................................................................ 9
Inbound Hub Optimization ..................................................................... 9
Configuration File Generation ................................................................. 9
Geocoding and Distance Providers..........................................................10
Transportation Optimization Improvments...............................................10
Safety Stock Optimization ..........................................................................11
Service Level Optimization ....................................................................11
Service Level Optimization Considerations ..........................................12
Running Service Level Optimization ...................................................13
Service Level Optimization Examples .................................................13
Minimize Cost Example ....................................................................14
Maximize Revenue Example .............................................................14
Maximize Profit Example ..................................................................15
Maximize Average Service Level Example...........................................15
Service Level Optimization Parameters ..............................................16
Service Level Optimization Summary Output Table ..............................17
Updates to Inventory Policy Summary ....................................................22
Input Pipe Support...............................................................................22
Infeasibility Diagnosis...........................................................................23
Infeasibility Diagnosis Optimization Options........................................23
Infeasibility Diagnosis Examples .......................................................25
Inventory Constraint Summary Table ................................................26
Testing Safety Stock Optimization using Simulation ..................................27
Generate Demand Series .................................................................30
LLamasoft® Supply Chain Guru™ Release Notes 8.4 i

Use Historical Demand.....................................................................31
Running Inventory Simulation ..........................................................32
Simulation Output...........................................................................33
Inventory Simulation Example ..........................................................34
Facility Demand Series ....................................................................36
Extremely Small Demand Class Threshold ...............................................37
Forecast Metrics ..................................................................................37
Measuring Forecast Performance.......................................................37
Lead Time Variability in Multi-Echelon Inventory Optimization ....................39
Cross Period Lead Time ........................................................................41
Configuration File Generation ................................................................45
Network Optimization ................................................................................45
Expression Count Constraints ................................................................46
Expression Constraint and Expression Based Cost Input Pipes ....................46
Risk Metrics ........................................................................................47
Configuration File Generation ................................................................49
Transportation Policy Fuel Surcharge Basis ..............................................50
Enhanced Infeasibility Diagnosis ............................................................51
Simulation ...............................................................................................52
Python Script Support ..........................................................................52
Simulation Options..........................................................................52
Python Script Import .......................................................................52
Process by Order Number Policy ............................................................53
Shelf Life ............................................................................................53
Dwell Time..........................................................................................54
Greenfield Analysis ...................................................................................54
Greenfield Analysis Custom Constraints ..................................................54
General ...................................................................................................55
Error Log Reporting..............................................................................55
Model Download from and Upload to the Cloud ........................................55
Classic Status Screen ...........................................................................55
Security .............................................................................................55
Issues Resolved in Version 8.4 ...................................................................55
Network Optimization ......................................................................55
Simulation .....................................................................................55
Transportation Optimization .............................................................56
Safety Stock Optimization ................................................................57
Greenfield Analysis .........................................................................57
Maps.............................................................................................57
Tables and Grids .............................................................................58
Routing .........................................................................................58
2 Known Issues ..................................................................... 59

Installation ....................................................................................59
Licensing .......................................................................................60
Models and Projects ........................................................................60
LLamasoft® Supply Chain Guru™ Release Notes 8.4 ii

Input Pipes ....................................................................................60
Greenfield Analysis .........................................................................61
Network Optimization ......................................................................61
Simulation .....................................................................................63
Safety Stock Optimization ................................................................64
Multi-Objective Optimization.............................................................64
Vehicle Route Optimization...............................................................65
Auto Implement Optimized Model......................................................66
GeoCoding Guru .............................................................................66
Routing .........................................................................................66
Tables and Grids .............................................................................66
Charts and Graphs ..........................................................................67
Scenarios.......................................................................................67
Import/Export ................................................................................68
Maps.............................................................................................68
Visual Modeler ................................................................................69
Product Classification Tool................................................................69
Cloud ............................................................................................69
Localization....................................................................................70
Help..............................................................................................72
3 Installation......................................................................... 73
System Requirements ...............................................................................74
Model Size .....................................................................................75
System Requirement Details .................................................................75
CPU Performance ............................................................................75
Memory Considerations ...................................................................76
Disk Speed ....................................................................................76
Operating Systems..........................................................................76
Displays on Laptops and Tablets .......................................................76
32-Bit versus 64-Bit Processing .............................................................76
User Agent and Host Access .......................................................................77
Prerequisite Software ................................................................................77
Microsoft .NET Framework ....................................................................77
ArcGIS Engine Runtime ........................................................................78
Python ...............................................................................................78
Optional Software .....................................................................................78
Microsoft Office ...................................................................................78
Microsoft SQL Server............................................................................79
Basic Supply Chain Database............................................................82
Server Instances ............................................................................82
SQL Server 2014 and Operating System Compatibility .........................83
SQL Server Services........................................................................83
Additional Notes regarding SQL Server ..............................................84
SQL Server Management Studio........................................................85
Google Earth .......................................................................................85
LLamasoft® Supply Chain Guru™ Release Notes 8.4 iii

Bing Geocoding Service ........................................................................85
PC*Miler.............................................................................................86
Tableau ..............................................................................................87
RateWare XL Server.............................................................................87
Installing Supply Chain Guru ......................................................................88
Installation Requirements .....................................................................88
Installation Supply Chain Guru and required Third Party Software: .............88
After Installation..................................................................................90
Supply Chain Guru Demo Models ......................................................91
Uninstalling Supply Chain Guru..............................................................91
Supply Chain Guru Licensing ......................................................................92
Standard Licenses................................................................................92
Internet Activation using Authorization Code ......................................93
Update Licenses from File ................................................................93
Request License via Email ................................................................93
Floating and Roaming Licenses ..............................................................94
Default Licenses ..................................................................................94
Limited License ...................................................................................94
Connecting to Remote Design Engines .........................................................95
Connecting to K2 Enterprise .......................................................................96
Web Services Information ..........................................................................98
User Agents ...................................................................................... 100
Hosts ............................................................................................... 100
URLs ................................................................................................ 101
Index ................................................................................105
iv LLamasoft® Supply Chain Guru™ Release Notes 8.4

Preface
Welcome to the Supply Chain Guru Release Notes 8.4. Please read through this entire
document to ensure you have a full understanding of how to install Supply Chain Guru
8.4 and make use of new and enhanced features.
For information about installing Supply Chain Guru 8.4, refer to “Installing Supply Chain
Guru” on page 88.
Related Documentation
The Supply Chain Guru documentation set includes the following documents:
 Supply Chain Guru Release Notes
 Supply Chain Guru User Guide
 Supply Chain Guru Data Dictionary
 Supply Chain Guru Tutorial
Customer Support
Supply Chain Guru users have access to support.llamasoft.com, which acts as a gateway
to a vast array of resources, data, tools, and knowledge.
LLamasoft® Supply Chain Guru™ Release Notes 8.4 1

Customer Support

Chapter 1
Release Notes
What’s New in Version 8.4?

There are a number of significant new features and enhancements to existing features in
Supply Chain Guru Version 8.4. Refer to the following topics for details about new and
enhanced functionality:
 Transportation Optimization
 Removal of Transportation Policies Requirement
 Baseline Modeling
 Transit Override Additive Cost
 Inbound Hub Optimization
 Configuration File Generation
 Geocoding and Distance Providers
 Safety Stock Optimization
 Service Level Optimization
 Updates to Inventory Policy Summary
 Input Pipe Support
 Infeasibility Diagnosis
 Testing Safety Stock Optimization using Simulation
 Extremely Small Demand Class Threshold
 Forecast Metrics
 Lead Time Variability in Multi-Echelon Inventory Optimization
 Cross Period Lead Time
 Network Optimization
 Expression Count Constraints
 Expression Constraint and Expression Based Cost Input Pipes
 Risk Metrics
 Transportation Policy Fuel Surcharge Basis

Chapter 1 Release Notes
 Enhanced Infeasibility Diagnosis

 Simulation
 Python Script Support
 Process by Order Number Policy
 Shelf Life
 Dwell Time
 Greenfield Analysis
 Greenfield Analysis Custom Constraints
 Issues Resolved in Version 8.4
Transportation Optimization
A number of new and enhanced features have been added to Transportation
Optimization:
 Removal of Transportation Policies Requirement
 Baseline Modeling
 Transit Override Additive Cost
 Inbound Hub Optimization
 Configuration File Generation
 Geocoding and Distance Providers
Removal of Transportation Policies Requirement

In previous versions of Supply Chain Guru, Transportation Optimization required
Transportation Policies to help determine which shipments were valid for inclusion (based
on Origin and Destination Location, as well as Transportation Policy values) and which
sites were considered “warehouse” locations.
As of the 8.4 version of Supply Chain Guru, Transportation Policies are no longer used by
Transportation Optimization. Instead, the Transportation Optimization solver determines
which locations are pool sites (warehouses) by default. There is a Warehouse field
included in the Sites table. This value will be null by default, allowing the solver to
determine which locations are warehouses. However, if desired, you can define which
locations should be used as “warehouse” locations by setting the Warehouse field in the
Sites table to “Yes”. When Transportation Optimization runs, the solver determines
inbound versus outbound pooling based on the Source Site and Destination Site values in
the Shipment record.
 If the shipment’s Source Site is flagged as a warehouse in the Sites table, this
indicates an outbound shipment (the Warehouse is the Pickup location).
 If the Destination Site is flagged as a warehouse, the shipment is inbound (the
Warehouse is the Delivery location).
 If both the Source Site and Delivery Site are flagged as Warehouse locations in the
Sites table, the Warehouse is used as the Pickup location (inbound).
In all problem types, the solver will automatically detect if the location is warehouse, so
in most cases, you can leave the Warehouse field blank.When you are using a problem
type other than Interleaved Optimization, the Warehouse field can be used to determine
if the location is the pool site for a group of customers. The solver decomposes the
4 LLamasoft® Supply Chain Guru™ Release Notes 8.4

problem using the pool site definition. For Interleaved Optimization, the solver will try to
use the value to decompose the problem if it satisfies network properties.
Baseline Modeling
Baseline functionality has been significantly improved for version 8.4. Transportation
Optimization builds the solution based on the baseline definition. Shipments that are not
defined as baseline shipments will be routed, but not on baseline routes.
You can use the new Baseline Shipments table to provide complete routing definitions for
baseline shipments. Baseline information in the Shipments table can still be used to
create a baseline solution.
When you solve a model using baseline shipments, the Baseline Output Shipments is
populated. You can then use this output to populate the Baseline Shipments table.
To populate the Baseline Shipments table from Baseline Output

Shipments:
1. Run Transportation Optimization to populate the Baseline Output Shipments table.
2. In the Baseline Output Shipment table, click the Move Baseline Output Records button
. You see the Baseline Importer form.

3. If your model has Baseline Output Shipments for more than one Scenario, select the
Scenario you want to use.
4. Select one of the following options for how to handle the shipments:
 Replace All Records – All existing records in the Baseline Shipments table are
deleted, then the Baseline Output Shipments for the selected Scenario are copied
to the Baseline Shipments input table.
 Append To Existing Records – Baseline Output Shipments for the selected Scenario
are copied to the Baseline Shipments input table. Existing records in Baseline
Shipments are retained.
Note: You can copy the same Baseline Output Shipments to the Baseline Shipments
input table more than once. This is supported so that you can create different
Baseline Solutions with changes to the Baseline Shipment definitions.
5. Click OK. The Scenario name selected from the Baseline Output Shipments is
populated in the Baseline Solution field in the Baseline Shipments table. Records that
are moved into the Baseline Shipments table have a Status of “Exclude” by default.
Baseline Modeling Rules

The general rules for using the constrained baseline are as follows:
 For all problem types except Periodic Optimization (PVRP) and Hub Optimization, fixed
baseline and partial baseline are both supported. The following rules apply:
 Shipments that are not defined as baseline shipments (in the Baseline Shipments
table or the standard Shipments table) will not be routed on the baseline routes.
 Baseline definitions with only one of either Pickup Sequence ID or Delivery
Sequence ID are not supported.
 Pickup and Delivery Sequence values require a valid Route ID.
 The Route Sequence value requires a Route ID and a valid Tour ID.

 The Asset Name requires a valid reference in the Transportation Assets input
table.
 The Asset Site Name requires a valid reference in the Sites input table.
 For each Route ID, you must have consistent Asset Name, Asset Site Name, Tour
ID and Route Sequence values.
 For each Tour ID, you must have consistent Asset Name and Asset Site Name
values.
 Currently, if any of the rules are violated, the shipments will become Invalid
Shipments.
 When using Interleaved Optimization, you must define both the Pickup Sequence
and Delivery Sequence for baseline shipments, or you can leave both Pickup
Sequence and Delivery Sequence blank.
 If you define a Tour ID, you can define either Asset Name, Asset Site Name, or
both, or you can leave Asset Name and Asset Site Name blank.
 You can use the Baseline Shipments table to define the equivalent of Asset –
Shipment Relationship Constraints. To do so:
 You must define the Shipment, Asset Name and Asset Site Name in Baseline
Shipments.
 Optionally, set Force Ship Direct to “Yes” if you want the shipment to go LTL.
 Baseline routing is not currently supported for Periodic Optimization.
Baseline Shipments
Use the Baseline Shipments table to assign shipments to baseline routes. You specify the
sequence in which the shipment is picked up and in which it is delivered. You can also
define specific assets for the baseline routes and combine them into tours.
Note: Baseline Shipments does not support split shipments.
Field Description Type
Baseline Solution Use this field to identify a set of Baseline Shipment Text (255)
records that represent a specific solution. If this value
is not populated, the Baseline Solution in the Baseline
Shipments Output table is set to 1.
Shipment Select the Name from the Shipments table. Text (255)
Default value: null
Route Enter the name of the Route on which the shipment is Text (255)
placed.
Default value: null
Route Start Date Enter the suggested date on which the route will start. Short Date
The solver determines the time at which it starts.
Default: If no value is populated, the date defaults to
the start of the Transportation Optimization horizon.

Pickup Sequence Enter the sequence number for the stop to pick up the Number (Double)
shipment on the defined route. Sequence numbers do
not need to be consecutive. For example, you can
define sequence numbers as 1, 4, 5, rather than 1, 2,
3.
Default value: null
Delivery Sequence Enter the sequence number for the stop to deliver the Number (Double)
shipment on the defined route. Sequence numbers do
not need to be consecutive. For example, you can
define sequence numbers as 1, 4, 5, rather than 1, 2,
3.
Default value: null
Asset Name Select the transportation asset associated with the Text (255)
baseline shipment.
Default value: null
Asset Site Name Select the site at which the assigned transportation Text (255)
asset is located.
Default value: null
Asset Tour Enter the tour that defines a grouping of routes when Text (255)
using the Asset Optimization problem type. When you
assign routes to a tour, use the Route Sequence ID to
determine the order in which the routes occur on the
tour.
Default value: null
Route Sequence Enter the sequence number of the route on the tour. Number (Double)
This sequence applies when you use the Asset
Optimization problem type and have defined a Tour ID
for the route.
Default value: null
Force Ship Direct One of Yes/No Yes/No

When this field is set to Yes, the solver forces the
shipment to use the Direct Shipping Method. When set
to No, the solver attempts to route the shipments on a
multi-stop route.
Default value: No
Linehaul Route When you use the Hub Optimization problem type, you Text (255)
can specify the route ID for the linehaul route into or
out of the hub. Use the Hub ID field to determine the
hub. Linehaul routes are direct (not multi-stop).
Default value: null

Hub Select the hub location through which the shipment is Text (255)
forced. The hub applies when you use the Hub
Optimization problem type.
Default value: null
Status One of Include, Exclude. Short Text (50)

Use this field to exclude Demand records from Network
Optimization and Transportation Optimization. This field
does not currently apply when using other algorithms,
such as Greenfield Analysis or Safety Stock
Optimization. In those cases, all Demand will be
included regardless of the Status value.
Default: Include
Baseline Output Shipments

The Baseline Output Shipments output table displays those shipments that have been
placed on baseline routes.
Field Description
Scenario The scenario for which the output data was generated.
Baseline Solution The Baseline Solution from the Baseline Shipments input table. Use this field
to identify sets of baseline shipments.
Shipment The identifier of the baseline shipment.
Route The identifier of the route used by the shipment, from the Route table.
Route Start Date Displays the start date and time of the route on which the baseline shipment
is routed.
Pickup Sequence Displays the pickup sequence number of the baseline shipment on the route.
Delivery Sequence Displays the delivery sequence number of the baseline shipment on the
route.
Asset Name The name of the asset used for the route on which the baseline shipment is
routed.
Asset Site Name Displays the name of the site at which the asset used for the route was
located.
Tour The name of the tour on which the baseline shipment is routed.
Route Sequence Displays the sequence number of the route as defined on the Tour.
Force Ship Direct Indicates whether or not the baseline shipment was defined with Force Ship
Direct. When this field is Yes, it means the solver forced the shipment to use
the Direct Shipping Method. When set to No, the solver used a multi-stop
routing method.
Linehaul Route If you used the Hub Optimization problem type, this field displays the route
ID for the linehaul route into or out of the hub.
Hub If you used the Hub Optimization problem type, this field displays the name
of the hub through which the baseline shipment is routed.

Field Description
Pickup Location Displays the location at which the baseline shipment was picked up.
Delivery Location Displays the location at which the baseline shipment was delivered.
Scenario ID The identifier of the scenario for which the output data was generated.
Sub-Scenario ID The identifier of the sub-scenario, if applicable, for which the output data
was generated. When you click on the field guru for the field, you see a
Scenario Item Wizard summary table. This table lists the scenario and sub-
scenario names along with the field that is being modified and the operator
and value of that field.
Transit Override Additive Cost

The Transit Override table includes an Override Cost field. If you enter a value for this
field for an Origin – Destination pair, it replaces the cost calculated during the solve. A
new Additive Cost field lets you define a cost to be added to the calculated cost. The
Additive Cost can be used to model tolls on specific route segments.
An Additive Cost field has also been added to the Routes and Segments output tables.
Inbound Hub Optimization

Support has been added for inbound Hub Optimization problems. The default for Hub
Optimization is to run it for inbound, but you can add a parameter to allow for outbound
Hub Optimization. The parameter, crossdocktype, is not exposed in the Transportation
Optimization Options. You can use the new Config_TO table to write it to the Config.dat
file for use by the solver.
ParameterName ParameterValue
crossdocktype Inbound
For information about using the Config_TO table to provide parameters to the solver,
refer to Configuration File Generation.
Configuration File Generation

Transportation Optimization can make use of an optional configuration file that sets
parameters used to control solver behavior. When you run Transportation Optimization,
parameters are written to the parameter.csv file in the <modelname>_TransOptimData
folder by default. If you want to override these values, you can create a config.dat file.
Any parameters defined in config.dat will override the settings in parameter.csv.
You can now set up and populate the config.dat file using a user defined table in the
Supply Chain Guru user interface.
To create the Transportation Optimization configuration table:

1. On the Model Data ribbon, click the User Defined Tables button:
You see the Open Custom Table form.
2. Click New. You see the Create New Table form.

3. Enter Config_TO as the Table Name. For the Display Name, use the default,
Config_TO, which is the same as the Table Name.
4. Click OK. The table is created within the model database and is opened in the
standard table view. By default, the table includes the following fields:
 ID – This is a system-generated unique identifier for the record.
 Status – Use this field to Include or Exclude the record in Config.dat when running
the model.
Define the required configuration fields in the table as described in the following
steps.
5. Click Add a User Defined Field , enter ParameterName as the Column
Caption and select String as the Data Type for the field data. You can leave the Usage
set to Other.
6. Click Add.
7. Repeat steps 5 through 6 for to add another String field called ParameterValue. The
Usage for this field is also Other.
When you want to use the configuration file, populate the ParameterName and
ParameterValue fields with the options you want to configure. For example, you can set
the ParameterName to DistanceFactor and the ParameterValue to 1.25. If you want to
use inbound Hub Optimization, set the ParameterName to crossdocktype and
ParameterValue to Inbound.
Geocoding and Distance Providers

The PTV web service has been added as a supported geocoding and distance provider.
You will need to obtain an account key to access PTV.
You can use PTV for geocoding, reverse geocoding, road distance calculation, transit
override calculation and to generated detailed routes for map display when running
Transportation Optimization.
To authorize the PTV provider:

1. Select File > Application Settings.
2. Select the Authentication Keys tab.
3. Select the PTV tab.
4. Enter the Account Key.
5. Click Test Credentials to verify the authorization. If the credentials are valid, you
get an “Authentication Successful” message.
6. Click OK. The PTV provider will now be available for GeoCoding, distance calculation
and the Distance Matrix Calculator.
Transportation Optimization Improvments

This section describes several improvements that have been made to Transportation
Optimization solving.
Interleaved Optimization
 The set covering model has been modified to get asset schedules. The ”Period Size in
Route Selection Model” option is now more directly related to solution quality in
Interleaved Optimization with Asset Optimization. LLamasoft recommends using as

Safety Stock Optimization
small a value as possible for the option. Typically, decreasing the value of ”Period Size
in Route Selection Model” will increase the total run time, so you may need to balance
the value based on performance.
 For Interleaved Optimization models, shipments are now always clustered by
assigning each shipment to the nearest asset domicile according to the routing
distance, the distance between the pickup location and the domicile, or the distance
between the delivery location and the domicile.
 The default values for several parameters have been changed to improve the solution
quality. Based on these changes, additional run time is expected to solve Interleaved
Optimization problems.
Asset Optimization
 The default values for several parameters have been changed to improve the solution
quality. Based on these changes, additional run time is expected to solve Asset
Optimization problems.
 Improved stability and robustness of Asset Optimization problems.
Hub Optimization
 In Hub Optimization problems, the solution quality has been improved and run times
have been reduced.
Standard Optimization and Asset Optimization

 Improved stability and robustness of Standard Optimization problems.
Periodic Optimization
 Unrouted PVRP Shipments can now be displayed on the Map.

Safety Stock Optimization includes a number of significant enhancements:
Service Level Optimization

Service Level Optimization has been added to Supply Chain Guru Safety Stock
Optimization. Given a user-defined service level, Safety Stock Optimization determines
the required safety stock levels at the facilities in the model while minimizing cost. In
Safety Stock Optimization, the decision variable is the service time between echelons
given a desired service level. Once the service time is optimized with the objective of
minimizing total inventory holding costs, the coverage (or risk period) for each echelon is
fixed. You must run Safety Stock Optimization before running Service Level Optimization
as the safety stock placement decision of where to hold inventory needs to be determined
prior to running Service Level Optimization. The goal of Service Level Optimization is to
select the optimal service level for each finished good within a user-defined product set at

a customer-facing facility to achieve a specific objective. The objectives and

corresponding constraints are as follows:
Objectives Constraints
Minimize Cost Achieve target average service level for the product set
Maximize Profit Achieve target average service level for the product set
Maximize Revenue Achieve target average service level for the product set
Maximize Average Service Level Budget for safety stock cost for the product set
Service Level Optimization can only be run after Safety Stock Optimization is complete.
During Service Level Optimization, the service time and coverage have to be fixed.
In addition, you must define one or more records in the Service Level Optimization
Parameters table to define the objectives and constraints for a set of products. Apart from
the objectives and constraints listed above, every product set also has minimum service
level and maximum service level constraints. The optimal service level for each individual
SKU has to fall within the range of min/max service levels defined.
For example, you can solve for Maximum Profit while adhering to target service level
minimum and maximum values. Service Level Optimization constraints are specified per
site-product set-period.
Note: Service Level Optimization constraints apply to customer-facing sites only.
You invoke Service Level Optimization using the Optimization Type option in Safety Stock
Options. This option supports the following run types:
 Safety Stock Optimization – When you select "Safety Stock Optimization", the
standard Safety Stock Optimization process runs.
 Service Level Optimization – When you select "Service Level Optimization", the
Service Level Optimization process runs. Service Level Optimization requires data
populated by Safety Stock Optimization.
 Safety Stock + Service Level Optimization – When you select "Safety Stock + Service
Level Optimization", Safety Stock Optimization runs followed by Service Level
Optimization.
Service Level Optimization Considerations

In order to use Service Level Optimization, Safety Stock Optimization must have
previously been run on the model/scenarios. The Inventory Policy Summary output table
must contain data for the specific scenario in order to run Service Level Optimization.
Site-Product combinations without Safety Stock Optimization results are skipped in
Service Level Optimization. The model must also have at least one record defined in
Service Level Optimization Parameters.
 If Safety Stock Optimization has not been run on the selected scenario, you will be
notified.
 If there are no records defined or included in Service Level Optimization Parameters,
you are warned and the Service Level Optimization process is terminated.
Service Level Optimization optimizes the service levels of finished goods at customer-
facing sites only. If a site faces both a customer and a facility, it is not considered
customer-facing only. If the product is a BOM component, it is not considered a finished

good. Service Level Optimization skips product sets with components or at non-
customer-facing only sites.
A product can only belong to one product set at one site/period based on the included
Service Level Optimization Parameters.
The Product Price has to be higher than Product Value if you are using the Max Profit
objective in Service Level Optimization Parameters.
Running Service Level Optimization
To run Service Level Optimization:

1. In Optimization Options, select the Safety Stock Options tab.
2. For the Optimization Run Type, select Service Level Optimization or, if you have
not already run Safety Stock Optimization, select Safety Stock + Service Level
Optimization. Safety Stock + Service Level Optimization will run Safety Stock
Optimization followed by Service Level Optimization.
3. Click Apply.
4. From the Run Optimization screen, select Safety Stock Optimization and click the
Run button.
Safety Stock Optimization runs Service Level Optimization and populates the Service
Level Optimization Summary Output Table.
Service Level Optimization Examples

The following examples illustrate how Service Level Optimization impacts the service
level of products to achieve the selected objectives. The Safety Stock Optimization results
for five products with initial service levels defined by a user as part of the Safety Stock
Optimization run are provided.
In our initial Safety Stock Optimization run, we have five products with initial service
levels as shown below:
Target Safety Stock

Site Name Product Name Service Type Safety Stock Coverage
Service Level Cost
DC Product1 0.9 Type2 34 111.7808 6
DC Product2 0.9 Type2 34 8.38356 6
DC Product3 0.9 Type2 34 55.89041 6
DC Product4 0.9 Type2 34 5.03014 6
DC Product5 0.9 Type2 34 4.47123 6
MFG Product1 0.8 Type2 0 0 0

Target Safety Stock

Site Name Product Name Service Type Safety Stock Coverage
Service Level Cost
The examples provide an illustration of the results when using the various objectives
available in Service Level Optimization.
Minimize Cost Example

In the Groups table, we group Product1 to Product5 into a product set and call it
ProdSet1. In the Service Level Optimization Parameters table, we set the objective to Min
Cost (minimize the safety stock cost) with a Target Average Service Level of 0.90.
Site Product Set Min Service Max Service Target Average Inventory Objective
Period Name
Name Name Level Level Service Level Budget Type
DC (Set) ProdSet1 (For Each Period) 0.75 0.98 0.90 Min Cost
Service Level Optimization optimally selects the service level for each product to
minimize the safety stock cost:
Target Service Safety Stock

Site Name Product Name Service Type Safety Stock
Level Cost
DC Product1 0.75 Type2 22 72.32877
DC Product2 0.96 Type2 43 10.60274
DC Product3 0.83 Type2 27 44.38356
DC Product4 0.98 Type2 50 7.39726
DC Product5 0.98 Type2 50 6.57534
Before Service Level Optimization, the total safety stock cost is $185.56. After service
level optimization, the total safety stock drops to $141.29 while maintaining the same
average service level.
Maximize Revenue Example

We use the same product set that groups Product1 to Product5. In the Service Level
Optimization Parameters table, we set the objective to Max Revenue (maximize the
revenue) with a Target Average Service Level of 0.90.
Period Name
DC (Set) ProdSet1 (For Each Period) 0.75 0.98 0.90 Max Revenue

With an objective of Max Revenue, Service Level Optimization will select higher service
levels for products with a higher product price, while maintaining the target average
service level:

Level Cost
DC Product1 0.98 Type2 50 164.38356
DC Product2 0.98 Type2 50 12.32877
DC Product3 0.98 Type2 50 82.19178
DC Product4 0.81 Type2 26 3.84658
DC Product5 0.75 Type2 22 2.89315
Maximize Profit Example

Again, we use the same product set that groups Product1 to Product5. In the Service
Level Optimization Parameters table, we set the objective to Max Profit (maximize the
profit) with a Target Average Service Level of 0.90.
Period Name
DC (Set) ProdSet1 (For Each Period) 0.75 0.98 0.90 Max Profit
With an objective of Max Profit, Service Level Optimization will select higher service levels
for products with a higher profit (Revenue – Cost), while maintaining the target average
service level:

Level Cost
DC Product1 0.98 Type2 50 164.38356
DC Product2 0.75 Type2 22 5.42466
DC Product3 0.98 Type2 50 82.19178
DC Product4 0.98 Type2 50 7.39726
DC Product5 0.81 Type2 26 3.41918
Maximize Average Service Level Example

In the last example, we use the same product set that groups Product1 to Product5. In
the Service Level Optimization Parameters table, we set the objective to Max Average
Service Level with an Inventory Budget (safety stock value) of $500,000.
Period Name
DC (Set) ProdSet1 (For Each Period) 0.75 0.98 500,000 Max Average
Service Level

When the objective is set to Max Average Service Level, Service Level Optimization will
optimally select the service level for each product to maximize the average service level,
within the budget constraint specified by the Inventory Budget. In this example, the
maximum average service level is 92.8%:

Level Cost
DC Product1 0.78 Type2 24 78.90411
DC Product2 0.98 Type2 50 12.32877
DC Product3 0.92 Type2 36 59.17808
DC Product4 0.98 Type2 50 7.39726
DC Product5 0.98 Type2 50 6.57534
Service Level Optimization Parameters

Use this table to define the objectives and constraints for product sets. Besides the
objective and constraint listed above, every product set also has a minimum service level
and a maximum service level constraint. This means the optimal service level for
individual finished good has to fall within the range of minimum/maximum service levels.
You must use product groups that have Function of “Set” for the Product Set Name.
Site Name Select the site for which the service level constraint Short Text (100)
applies. This must be a single site and should be a
customer-facing facility.
Product Set Name Select the product set for which the service level Short Text (100)
constraint applies. The product group must be defined
with Function = “Set” to be valid for the Product Set
Inventory Policy.
Period Name Select the period for which the service level constraint Short Text (50)
applies. In a single period model, the service level
constraints apply to the model horizon. In a multi-period
model, you must select the period to which the service
level constraints apply.
Select “(For Each Period)” if you want the service level
constraints to be applied to all periods in a multi-period
model.
Default value: “(For Each Period)”
Min Service Level Enter the minimum required service level of the product Number (Double)
set for customer-facing sites. The number must be input
as a decimal - that is, 95% would be input as .95, not
95. A service level value of .50 ensures that no safety
stock is held (that is, if the service definition is Type 1).
If no service levels are specified at any site, the service
level will default to 95%for the customer facing facilities.
If service levels are not specified upstream from a site
where a service level is specified, service level
propagation is applied.

Max Service Level Enter the maximum allowed service level of the product Number (Double)
set for customer-facing sites. The number must be input
as a decimal - that is, 95% would be input as .95, not
95.
Objective Type Select the Objective to be used when running Service Short Text (50)
Level Optimization for the Product Set at the Site.
Service Level Optimization works to achieve the selected
objective across a set of products while finding a service
level within targeted values. The objective is one of:
 Min Cost – Service Level Optimization will seek to
minimize the safety stock cost of the solution while
achieving a service level within the target range
across the set of products.
 Max Profit – Service Level Optimization will seek to
maximize the profit of the solution while achieving a
service level within the target range across the set of
products.
 Max Revenue – Service Level Optimization will seek to
maximize the revenue (not incurring cost) in the
solution while achieving a service level within the
target range across the set of products.
 Max Average Service Level – Service Level
Optimization will seek to maximize the average
service level across the set of products within the
budget defined by the Inventory Budget.
Target Average Enter the average service level of the product set for the Number (Double)
Service site. The number must be input as a decimal - that is,
95% would be input as .95, not 95.
When you select "Min Cost", "Max Profit" or "Max
Revenue" as the Objective Type then the default value
will be set to 0.95. This value is not used when the
Objective Type is “Max Average Service Level”.
Inventory Budget Use the Inventory Budget to determine the maximum Number (Double)
holding cost for Safety Stock. This value is used when
you select "Max Average Service Level" as the Objective
Type. In this case, the default value will be set to
1000000.
Status Use this field to exclude Service Level Optimization Short Text
Parameters records from Safety Stock Optimization.
Default: Include
Service Level Optimization Summary Output Table

When you run Service Level Optimization, the Service Level Optimization Summary
output table is populated.
Field Description
Site Name The name of the site at which the the product is held.
Product Name The name of the product held at the site.

Field Description
Period Name The period to which the safety stock and inventory policy
applies.
Target Service Level The service level value specified in the Service Level
Optimization Parameters table. Service Level Optimization
will optimize the safety stock to satisfy the given target
service level. This field will be left blank when Safety
Stock is zero for the site-product. The default Target
Service Level for the customer-facing site is set to 0.95.
Service Type The Service Definition used for the output calculation for the
product at the site during the period. This is usually the same as
the Service Definition value in Optimization Options > Safety
Stock Options.
Safety Stock The optimized amount of safety stock that should be held to
account for unknown variations in demand or lead time.
Excess Safety Stock This field displays the difference between the Minimum Safety
Stock as defined in the Inventory Policies table and the
calculated optimal safety stock. Safety Stock is the optimized
amount of safety stock you must carry to satisfy the target
service level. However, you may want to carry more than the
optimized safety stock. In this case, you can input a Minimum
Safety Stock that is greater than the optimal safety stock. When
the Minimum Safety Stock > optimal safety stock, the difference
is reported as Excess Safety Stock.
Total Safety Stock This field displays the sum of the Safety Stock and Excess Safety
Stock.
Safety Stock DOS The equivalent number of days of supply (DOS) to be held in
inventory as safety stock to account for unknown variations in
demand or lead time. Safety Stock DOS is derived as:
Safety Stock/Daily Demand Mean
Daily Demand Mean is calculated as:
(aggregated) Demand Mean/Average number of days in
aggregation period)
This value is in DAYS.
Safety Stock Cost The cost of holding the safety stock.

Safety Stock Cost = Safety Stock * Product Value * Inventory
holding cost % * Period Length/365 days.
The Period Length is affected by the Work Week setting in Safety
Stock Options. For example, if your Period is one year and the
Work Week is 7 Days, the Period Length is 365. If the Work Week
is 5 Days, the length is 261. You can see the period length in the
Aggregation Period field of the Customer Demand Profile
Optimization Output table.
Safety Stock Value The total product value of the safety stock.
Safety Stock Value = Safety Stock * Product Value

Field Description
Coverage The optimized net period of risk (in days) that a site's safety
stock will cover. Also known as the "net replenishment lead
time". Coverage is equal to this site's immediate lead time, plus
the service time quoted by its nearest source, minus the service
time this site quotes to its customer or nearest downstream
sites. When the site has multiple sources or destinations,
coverage is calculated from the combination of coverage for each
source-site-destination.
Daily Demand Mean Daily Demand Mean is calculated as:

(aggregated) Demand Mean/Average number of days in
aggregation period.
Daily Demand Std Dev Daily Demand Std Dev is calculated as:
(aggregated) Demand Standard Deviation/Average number of
days in aggregation period.
Demand Class Details Demand Class Details summarizes the demand class from four
different aspects. This is the class that Safety Stock Optimization
uses to determine Lead-Time Demand Distribution and which
inventory policy is recommended.
Recommended Policy The inventory control policy that is appropriate for demand at
the site for the product in order to maintain the service
requirement.
Policy Parameter 1 The first parameter as determined based on the Recommended

Policy. For example, if the Recommended Policy is (R,Q), Policy
Parameter 1 will be the value for the Reorder Point (R). If the
Recommended Policy is (s,S), Policy Parameter 1 will be the
value for the Report Point (s).
Policy Parameter 2 The first parameter as determined based on the Recommended

Policy. For example, if the Recommended Policy is (R,Q), Policy
Parameter 2 will be the value for Reorder Qty (Q). if the
Recommended Policy is (R,Q), Policy Parameter 2 will be the
value for Reorder Up To Qty (S).
Expected Type 1 Service The expected Type 1 service level met by the recommended
safety stock and inventory policy. When Service Definition =
Type 1, the value will be the same as the Target Service Level for
“Continuous” products, and greater than or equal to the Target
Service Level for “Discrete” products. For example, 9.5 liters of
water will satisfy exactly 0.95 service requirements. However, if
water is packed 1 liter per bottle, then it must be rounded up to
10 bottles to satisfy 0.95 service requirements. Since 10 Liters >
9.5 Liters, the expected service level will be higher than 0.95.

Field Description
safety stock and inventory policy. When Minimum Order Qty (Q)
or Days Between Replenishments or both are not provided, this
field is calculated based on Q = 1. You must provide Minimum
Order Qty (Sourcing Policies) or Days Between Replenishments
(Transportation Policies) if Type 2 is used as a target service level
to calculate safety stock. When Service Definition = Type 2, the
value will be the same as the Target Service Level for
safety stock and inventory policy. When Minimum Order Qty (Q)
or Days Between Replenishments or both are not provided, this
field is calculated based on Q = 1. You must provide Minimum
Order Qty (Sourcing Policies) or Days Between Replenishments
(Transportation Policies) if Type 2 is used as a target service level
to calculate safety stock. When Service Definition = Type 2, the
value will be the same as the Target Service Level for
Lead Time Demand Dist The distribution used to represent the demand during risk period
(coverage). This is determined by Demand Class Details and lead
time demand parameters.
Lead Time Demand Mean The average demand during lead-time. This is derived by:
Demand Mean * Coverage
Lead Time Demand Std Dev The standard deviation of demand during risk period (coverage).
Avg Backorders The long-run time weighted average of backorders (shortage).
Avg Inventory The long-run time-weighted average on-hand inventory levels.
Avg Replenishment Qty The average size of replenishment orders. This is greater than or
equal to Min Replenishment Qty.
For example, assume the order quantity Q = 4. Depending on
the demand, the replenishment orders will vary. Assume that on
day 1, the total replenishment order is 1 * Q = 4 (ordering in
multiples of Q). On day 2, the replenishment order is 4 * Q = 16.
On day 3, the replenishment order is 3 * Q = 12. In this case,
the Avg Replenishment Qty is (4+16+12)/3 = 11.
Sourcing Type Identifies if the site is sourcing the product from a single site or
multiple source(s)/mode(s) during the period. If the site has
multiple sources for the product, the recommended inventory
policy for each source is displayed in this table.

Field Description
Cycle Stock Cycle Stock is the stock on hand to satisfy regular sales orders or
demand from downstream sites, excluding the safety stock. It is
calculated as:
Cycle Stock = Batch size / 2 = max (MOQ, DBR*Daily Demand
Mean) / 2
Cycle Stock Cost Cycle Stock Cost is the cost incurred to hold Cycle Stock. It is
calculated as:
Cycle Stock Cost = Cycle Stock * Product Value * Inventory
holding cost % * Period Length / 365 days.
Work In Progress Inventory Work In Progress is the materials and components that have
begun their transformation to finished goods. It is calculated as:
Work In Progress = Product Time * Demand Mean / 2
Work In Progress Inventory Cost Work In Progress Cost is the cost incurred to hold Work In
Progress Inventory. It is calculated as:
Work In Progress Cost = Work in Progress * Product Value *
Inventory Holding Cost % * Period Length/365 days
Incoming In Transit Inventory Incoming In Transit Inventory is goods that have shipped from
the source location but have not yet arrived at the destination
location. It is calculated as:
Incoming In Transit Inventory = Transportation Time * Demand
Mean
Incoming In Transit Inventory Incoming In Transit Inventory Cost is the cost incurred to hold
Cost Incoming In Transit Inventory. It is calculated as:
Incoming In Transit Inventory Cost = Incoming In Transit
Inventory * Product Value * Inventory Holding Cost % * Period
Length / 365 days
Total Inventory The Total Inventory is calculated as:

Total Inventory = Total Safety Stock + Cycle Stock + Incoming
In Transit Inventory + Work In Progress
Total Inventory Cost The Total Inventory Cost is the cost to hold all inventory. It is
calculated as:
Total Inventory Cost = Total Inventory * Product Value *
Total Inventory Value The Total Inventory Value is the value of all inventory currently
held. It is calculated as:
Total Inventory Value = Total Inventory * Product Value
Scenario ID The identifier of the scenario for which the summary data was
generated.
Sub-Scenario ID The identifier of the sub-scenario, if applicable, for which the

summary data was generated. Click on the field guru for the field
to open a Scenario Item Wizard summary table. This table lists
the scenario and sub-scenario names, in addition to the field that
is being modified and the operator and value of that field. The
summary table can assist in distinguishing the sub-scenarios
both by name and by their internal values.

Updates to Inventory Policy Summary

Additional fields have been added to the Inventory Policy Summary Optimization Output
table:
Field Description
Cycle Stock Cycle Stock is the stock on hand to satisfy regular sales orders
or demand from downstream sites, excluding the safety stock.
It is calculated as:
Cycle Stock = Batch size / 2 = max (MOQ, DBR*Daily Demand
Mean) / 2
Cycle Stock Cost Cycle Stock Cost is the cost incurred to hold Cycle Stock. It is
calculated as:
Cycle Stock Cost = Cycle Stock * Product Value * Inventory
holding cost % * Period Length / 365 days.
Work In Progress Inventory Work In Progress is the materials and components that have
begun their transformation to finished goods. It is calculated as:
Work In Progress = Product Time * Demand Mean / 2
Work In Progress Inventory Cost Work In Progress Cost is the cost incurred to hold Work In
Progress Inventory. It is calculated as:
Work In Progress Cost = Work in Progress * Product Value *
Incoming In Transit Inventory Incoming In Transit Inventory is goods that have shipped from
the source location but have not yet arrived at the destination
location. It is calculated as:
Incoming In Transit Inventory = Transportation Time * Demand
Mean
Incoming In Transit Inventory Incoming In Transit Inventory Cost is the cost incurred to hold
Cost Incoming In Transit Inventory. It is calculated as:
Incoming In Transit Inventory Cost = Incoming In Transit
Inventory * Product Value * Inventory Holding Cost % * Period
Length / 365 days
Total Inventory The Total Inventory is calculated as:

Total Inventory = Total Safety Stock + Cycle Stock + Incoming
In Transit Inventory + Work In Progress
Total Inventory Cost The Total Inventory Cost is the cost to hold all inventory. It is
calculated as:
Total Inventory Cost = Total Inventory * Product Value *
Total Inventory Value The Total Inventory Value is the value of all inventory currently
held. It is calculated as:
Total Inventory Value = Total Inventory * Product Value
Input Pipe Support

Input Pipes are now supported for the following fields used in Safety Stock Optimization.
Sourcing Policies Table:

 Days Between Productions

Transportation Policies Table:
 Days Between Replenishments
 Minimum Shipment Quantity
 Minimum Service Time
 Maximum Service Time
Inventory Policies Table:
 Min Service Time
 Max Service Time
 Min Safety Stock
 Max Safety Stock
Infeasibility Diagnosis
You can now run Infeasibility Diagnosis enabled for Safety Stock Optimization. In
addition, you can control how Safety Stock Infeasibility analyzes constraints using
Infeasibility Diagnosis Optimization Options. The results of this analysis are populated in
the Inventory Constraint Summary Table.
Once Safety Stock Optimization returns an infeasibility, Safety Stock Infeasibility
Diagnosis can help you detect what sets of constraints are causing the infeasibility.
Infeasibility arises primarily from conflicting constraints.
To run Safety Stock Infeasibility Diagnosis:

1. In Optimization Options, select the Infeasibility Options tab.
2. Select the Safety Stock Optimization setting in Infeasibility Diagnosis Options.
3. Select the checkboxes for the constraints you want to include in the infeasibility
diagnosis:
 Minimum Service Time
 Maximum Service Time
 Maximum Safety Stock
 Non-Stocking Site
Note: LLamasoft recommends that you run infeasibility diagnosis with all options
checked in the first run. For additional information, refer to Infeasibility Diagnosis
Optimization Options.
4. Click Apply.
5. Run Infeasibility Diagnosis.
Safety Stock Optimization runs an infeasibility diagnosis algorithm and populates the
Inventory Constraint Summary Optimization Output table with details about the
constraints it analyzed.
Infeasibility Diagnosis Optimization Options

You can control Infeasibility Diagnosis for Safety Stock Optimization using the options on
the Infeasibility Options tab:

 Safety Stock Infeasibility Diagnosis – When this option is selected, Infeasibility

Diagnosis is run for Safety Stock Optimization. You can then select which of the
various constraints should be analyzed during infeasibility diagnosis:
 Minimum Service Time – Select this option to assess the Minimum Service Time
constraints in the model. If a Minimum Service Time constraint is triggering
infeasibility, the Constraint Name in the Inventory Constraint Summary table is
“Min service time”. The Input Constraint indicates the current Min Service Time
and the Suggested Constraint indicates a value that can overcome the infeasibility.
To set this option in a scenario item, select the “Minimum Service Time”
Infeasibility Diagnosis Option and enter True as the value.
 Maximum Service Time – Select this option to assess the Maximum Service Time
constraints in the model. If a Maximum Service Time constraint is triggering
“Max service time”. The Input Constraint indicates the current Max Service Time
and the Suggested Constraint indicates a value that can overcome the infeasibility.
To set this option in a scenario item, select the “Maximum Service Time”
Infeasibility Diagnosis Option and enter True as the value.
 Maximum Safety Stock – Select this option to assess the Maximum Safety Stock
constraints in the model. If a Maximum Safety Stock constraint is triggering
“Max safety stock (DOS)” if the Safety Stock Basis is DOS or “Max safety stock
(Quantity)” if the Safety Stock Basis is Quantity. The Input Constraint indicates
the current Max Safety Stock and the Suggested Constraint indicates a value that
can overcome the infeasibility. To set this option in a scenario item, select the
“Maximum Safety Stock” Infeasibility Diagnosis Option and enter True as the
value.
 Non-Stocking Site – Select this option to assess whether or not setting the
Stocking Site value to No is a cause for infeasibility. If a non-stocking site is a
cause for infeasibility, the Constraint Name in the Inventory Constraint Summary
table will be “Non-stocking site”, the Input Constraint is “NonStocking” and the
Suggested Constraint is “Stocking”. To set this option in a scenario item, select the
“Non-Stocking Site” Infeasibility Diagnosis Option and enter True as the value.
If you do not check an option, these constraints are considered hard constraints.
In many cases, the constraints that causes infeasibility in Safety Stock Optimization are
related and conflict with each other. For example, a customer-facing site is non-stocking,
and it does not achieve the service time to the customer. In this case, you can either
change the site to be stocking, or increase the required service time to make it feasible.
Using the infeasibility options listed above, you choose which constraints to relax. When
you select the checkbox for a specific constraint, it means you are willing to change the
corresponding constraint to make the model feasible.
LLamasoft recommends that you run infeasibility diagnosis with all options checked in the
first run. In this way, you can review the Inventory Constraint Summary table to identify
what is causing the infeasibility. You can then determine which constraint(s) to relax in
subsequent runs of infeasibility diagnosis. This analysis requires some knowledge of the
guaranteed service time model.
Typically, if a non-stocking site constraint is causing the infeasibility, you should adjust
the site to allow stocking.

Infeasibility Diagnosis Examples

Assume you have the following model:
We calculate Coverage at the DC as:

CoverageDC = TDC + SMFG - SDC
where:
TDC = immediate lead time (DC)
SMFG = service time (MFG to DC)
SDC = service time (DC to CZ)
SMFG and SDC are the decision variables.
Coverage(MFG) >= 0 and Coverage(DC) >= 0 are the constraints.
Min Service Time

When the Min Service Time is larger than the Max Lead Time, the Coverage is forced to
be negative, which is infeasible. For example, if MFG has a Min Service Time of 4 days,
which exceeds its Max Lead Time of 3 days, then the Coverage is -1, which is infeasible.
Lead Time Service Time Coverage
TMFG = 3 days SMFG >= 4 days CovMFG = TMFG - SMFG <= -1
When you run Safety Stock Infeasibility Diagnosis, it suggests changing the Min Service
Time from 4 days to 3 days.
Site Destination Product Period BOM Mode Constraint Name Input Suggested
Name Name Name Name Name Constraint Constraint
MFG DC P1 SinglePeriod Min service time 4 5
Max Service Time/ Non-Stocking Site

The Max Service Time and non-stocking site constraints (Stocking Site = No in Inventory
Policies) often conflict with each other. This results in an infeasibility. For example, if the
DC is a non-stocking site, then it should quote at least 3 days of service time to the CZ
(this is the DC’s immediate lead time) to achieve service. If the DC also has a Max
Service Time of 2 days, the model is infeasible. In this case, there are two ways to solve
the infeasibility: either change the DC to a stocking site or quote a service time more
than 3 days.
TDC = 3 days SDC <= 2 days, SMFG >= 0 CovDC = TDC + SMFG - SDC > 0

When you run Safety Stock Infeasibility Diagnosis, it suggests changing the DC to a
stocking site.
Site Destination Product Period BOM Constraint Input Suggested

Mode
Name Name Name Name Name Name Constraint Constraint
DC P1 SinglePeriod 1 Non-stocking site
Max Safety Stock

When Max Safety Stock is not enough to cover the minimal risk period, the model is
infeasible. For example, by default, the DC quotes 0 service time to the CZ; therefore, it
needs to cover at least 3 days of risk period (the DC’s immediate lead time). If the Max
Safety Stock is set less than the minimal required to cover 3 days, the model is
infeasible.
TDC = 3 days SDC = 0, SMFG >= 0 CovDC = TDC - SMFG - SDC >= 3
When you run Safety Stock Infeasibility Diagnosis, it suggests changing the Max Safety
Stock from 20 to 29. We can also tell that 29 is the minimal required safety stock for the
DC.
Site Destination Product Period BOM Constraint Input Suggested

Mode
Name Name Name Name Name Name Constraint Constraint
DC CZ P1 SinglePeriod 1 Max safety stock 20 29

(Quantity)
Inventory Constraint Summary Table

The Inventory Constraint Summary Optimization Output table provides details about the
constraints that cause infeasiblity and the suggested value for each of these constraints.
Field Description
Site Name The source site for the product in the period.
Destination Name The destination site for the product in the period, if applicable.
Product Name The name of the product held at the site.
Period Name The period to which the safety stock and inventory policy applies.
BOM Name The BOM (Bill of Materials) to which the safety stock and inventory
policy applies.
Mode The mode to which the safety stock and inventory policy applies.
Constraint Name The constraint that has been applied during Safety Stock Optimization.
Input Constraint The actual value of the constraint specified by Constraint Name.
Suggested Constraint The recommended value of the constraint specific by Constraint Name
in order to overcome the Safety Stock Optimization infeasibility.

Field Description
Scenario ID The scenario for which the output data was generated.
Sub-Scenario ID The identifier of the sub-scenario, if applicable, for which the summary
data was generated.
Testing Safety Stock Optimization using Simulation

Simulating inventory policies for a supply chain network can be very taxing depending on
the number of facilities, products, bill of material structures and the flow. Supply Chain
Guru has a powerful engine that can simulate these complex supply chain networks
within a reasonable amount of time. However, a supply chain manager may want to focus
on only Inventory Simulation at each site without simulating the flow of products between
facilities. The Supply Chain Guru Inventory Simulation tool enables you to test the results
of Safety Stock Optimization using Simulation in this way.
Inventory Simulation allows you to simulate the Safety Stock Optimization results by
focusing on only recommended optimal policies. You can then see the performance of the
optimized Safety Stock policy parameters. A given site is simulated based on the
assumption that the lead time of the downstream site is exactly equal to the coverage
value which is optimized during Safety Stock Optimization.
The Inventory Simulation is performed for each site-product combination considering the
multi-echelon inventory optimization recommendations (as shown in the Inventory
Simulation flow chart shown below). As part of the Inventory Simulation, the demand
series is generated for each site-product combination. Lead time is either fixed or is a
stochastic variable with two known moments (i.e. mean and standard deviation). The
facility has a fixed ordering policy with known parameters that satisfy the target service
level. Inventory Simulation takes into account lead time, policy, policy parameters and
demand series. The Inventory Simulation allows you to see whether the underlying policy
yields a service level close to the target service level. This also allows you to see the on-
hand/average inventory for each site-product.
The inputs for Inventory Simulation tool are collected from output tables after running
Safety Stock Optimization. For a given site-product combination, the set of required
inputs consists of optimal coverage value, optimal inventory policy, policy parameters,
the initial inventory level and the demand series. The demand series for the underlying
site-product combination is either a historical demand series or it is generated by a
special “demand generator” tool. By default, the demand series is generated using the
demand statistics. The generated demand series has demand statistics that are the same
or very close to the original demand statistics. The demand generator takes the demand
statistics inputs directly from the Facility Demand Profile table for a given site-product
combination.
Inventory Simulation provides the inputs to the simulation engine for the site-product
combination. The results are reported in the simulation output tables. You can review the
simulated service level results within the simulation output tables for each site-product
combination. You can see the actual performance of the recommended optimal policy and
policy parameters for a given site-product combination.
Note: Inventory Simulation is currently supported for single period Safety Stock
Optimization models only.

A flow chart for Inventory Simulation is show below.
Note that when using Inventory Simulation, there are two different paths you can take:
 Generate Demand Series – As highlighted in the orange box.
 Use Historical Demand – As highlighted in the grey box.
In principle, you should run simulation for a model period with a long demand series. By
default, Inventory Simulation generates a 2-year long demand series with a 3 month
warm-up period. You can adjust both the simulation length and the warm-up period as
needed.
As described earlier, the inputs for Simulation are populated using the Safety Stock
Optimization results for a given site-product combination. The mapping of these results

follows a number of steps. First, the optimal inventory policies are populated, as shown in
the graphic below:
The next step is to determine the initial inventory levels. The initialization of the on-hand
inventory represents a system that begins as if the inventory system has just received
replenishment. The policy is initialized at a very high customer service level (99.9%) in
order to minimize the risk of a backlog at the beginning of the replication. The simulation

is started such that the inventory on hand at the beginning of the run (the Initial
Inventory level) is equal to the Order Up To level as shown in the graphic below:
Next, the optimal coverage values are mapped into lead times. A common method to
create a single echelon model is to assume that the facility is a production unit. Then, the
lead time of the production facility is regarded as a production time. The optimal
coverage values are mapped to the production time, as shown in the following graphic:
Note: The Inventory Simulation is not the same as an end-to-end simulation,

considering optimal inventory policy recommendations from Safety Stock
Optimization, as the Inventory Simulation is performed for each site-product
combination independently. The assumption that is being made is that upstream
service failures are not considered when performing an Inventory Simulation per
site-product.
Generate Demand Series

When you run Safety Stock Optimization, the solver populates the Customer Demand
Profile and Facility Demand Profile tables with statistics that can be used to generate
demand. The Inventory Policy Summary table is populated with information such as

coverage, lead time, recommended inventory policies and initial inventory levels. These
values, along with the generated demand series, are provided to Simulation.
By default, Inventory Simulation generates a demand series for each Site-Product
combination for the horizon you specify. It uses statistics from the Customer Demand
Profile and Facility Demand Profile (Demand Mean, Demand Std Dev, Inter-Demand
Interval Mean, Non-zero Demand Mean, Non-zero Demand Std Dev) to randomly
generate the demand.
Note: Only Site-Product combinations where the coverage is greater than zero are
included in the demand series.
When using Inventory Simulation with the Generate Demand Series workflow, the final
step of the Inventory Simulation mapping procedure is to map the required demand
statistics parameters into the “demand generator”. The demand series generation process
is illustrated below:
Use Historical Demand

If you prefer to make use of historical demand, Safety Stock Optimization must first be
run with the "Populate Facility Demand Series" check box selected in Safety Stock
Options. When this option is checked, Safety Stock Optimization populates the Facility
Demand Series table for all sites: both customer-facing and non customer-facing.
If you want to populate the Facility Demand Series, your Facilities Propagation method
must be “Demand Series”. If this option is set to “Formula”, the Facility Demand Series
table will not be populated.
To set this option in a scenario item, select the “Populate Facility Demand Series” Safety
Stock Option and enter True as the value.
When you run Inventory Simulation, select “Run Simulation Using Historical Demand” in
Inventory Simulation Options to use the Facilities Demand Series data.

Running Inventory Simulation

In order to run Inventory Simulation, the model scenario you want to run must have been
run with Safety Stock Optimization, as Simulation uses data that is populated by Safety
Stock Optimization in the Customer Demand Profile, Facility Demand Profile and
Inventory Policy Summary tables. LLamasoft also recommends that your Safety Stock
Optimization results are up-to-date. Therefore, if you have not recently run Safety Stock
Optimization, you may want to re-run it to ensure you have current results.
To run Inventory Simulation:

1. After running Safety Stock Optimization, select Tools > Inventory Simulation .
You see the Inventory Simulation Tool form.
2. Select the model scenario(s) you want to run.
3. Click Options to set the options for Inventory Simulation. Enter or select:
 Warm Up Period Set To – Simulation uses steady state requirements in order to
verify Safety Stock recommendations. The warm up period, combined with a
reasonable length model horizon, allows Simulation to achieve the steady state.
The default warm up period is 3 Months. To set this option in a scenario item,
select the “Warm Up Period In Months” Safety Stock Option and enter the number
of months as the value.
 Simulation Length Set To – For Inventory Simulation to be effective, the
Simulation horizon must be a reasonable length. LLamasoft recommends no less
than 12 months. When “Run Simulation Using Historical Demand” is not checked,
the Simulation Length is used directly. When “Run Simulation Using Historical
Demand” is checked, the simulation period is set as described in Running
Simulation with Historical Demand. The default Simulation horizon is 24 Months.
To set this option in a scenario item, select the “Simulation Length In Months”
Safety Stock Option and enter the number of months as the value.
Note: If the Simulation Length is less than 12 months, Inventory Simulation will
display a warning message.
 Run Simulation Using Historical Demand – When this option is unchecked,

Inventory Simulation generates a demand series for each Site-Product
combination. When this option is checked, Inventory Simulation checks to see if
the Facility Demand Series table is populated. If not, you will need to re-run
Safety Stock Optimization with the "Populate Facility Demand Series" check box
checked in Safety Stock Options and Facilities Propagation set to “Demand Series”.
To set this option in a scenario item, select the “Run Simulation Using Historical
Demand” Safety Stock Option and enter True as the value.
 Select the Transaction Data tables and Time Series Statistics you want to populate
during Simulation. Refer to Simulation Output for additional information.
Once the options are set, click Apply. You can use the dropdown to apply the options
to the current model, all models or selected models.
4. Click the Run button. If the Inventory Policy Summary table is not populated, you are
warned that Safety Stock Optimization has not been run and you will need to first run
Safety Stock Optimization before running Inventory Simulation.
Inventory Simulation then runs on the selected model scenarios for which Safety Stock
Optimization has been run.

Running Simulation with Historical Demand

When you run Inventory Simulation using Historical Demand, Simulation uses an even
multiple of the demand that was supplied as part of the Safety Stock Optimization. The
“Simulation Length Set To” parameter is used, but it is rounded up to the next higher
multiple of the original model horizon if necessary. In this way, the simulation will not be
"skewed" by a strange distribution of demand. The “Warm-up Period Set To” parameter
is used as specified in the Inventory Simulation Options.
Simulation Output
Simulation will populate specific output tables and values as listed below:
Transaction Data:
 Demand Transactions – When this option is selected, results are populated in the
Demand Transactions Simulation Output table. To set this option in a scenario item,
select the “Demand Transactions” Safety Stock Option and enter True as the value.
 Shipment Transactions – When this option is selected, results are populated in the
Shipment Transactions Simulation Output table. To set this option in a scenario item,
select the “Shipment Transactions” Safety Stock Option and enter True as the value.
 Order Transactions – When this option is selected, results are populated in the Order
Transactions Simulation Output table. To set this option in a scenario item, select the
“Order Transactions” Safety Stock Option and enter True as the value.
Time Series Statistics:
 Inventory – When this option is selected, results are populated for the Inventory Units
field on the Simulation Time Series Graph. To set this option in a scenario item, select
the “Inventory” Safety Stock Option and enter True as the value.
 Inventory Value – When this option is selected, results are populated for the
Inventory Investments field on the Simulation Time Series Graph. To set this option in
a scenario item, select the “Inventory Value” Safety Stock Option and enter True as
the value.
 Inventory Volume – When this option is selected, results are populated for the Space
Utilization field on the Simulation Time Series Graph. To set this option in a scenario
item, select the “Inventory Volume” Safety Stock Option and enter True as the value.
 Back Order Units – When this option is selected, results are populated for the
Backorder Units field on the Simulation Time Series Graph. To set this option in a
scenario item, select the “Back Order Units” Safety Stock Option and enter True as
the value.
 Reorder Point – When this option is selected, results are populated for the Reorder
Point field on the Simulation Time Series Graph. To set this option in a scenario item,
select the “Reorder Point” Safety Stock Option and enter True as the value.
 Order Up To Quantity – When this option is selected, results are populated for the
Order Up To field on the Simulation Time Series Graph. To set this option in a scenario
item, select the “Order Up To Quantity” Safety Stock Option and enter True as the
value.

Inventory Simulation Example

Suppose that we are given a single product 4-echelon network shown as below:
The demand information is available as a one year demand series between 1/1/2016 -
12/30/2016 at the customer level.
The lead times for each site other than the top echelon are defined by transportation
times. At the top echelon, the Manufacturer, the lead time is defined by production time.
Step1: Run Safety Stock Optimization (SSO)
Safety Stock Optimization must be run before you run Inventory Simulation. In this
example, we run Safety Stock Optimization using the “Type 2 (Quantity fill rate)” Service
Definition. You set this on the Safety Stock Options tab in Optimization Options.
Additionally, we will want to use historical demand when running Inventory Simulation, so
we also select the checkbox for “Populate Facility Demand Series” on the Safety Stock
Options tab in Optimization Options.
You can observe the solution in the Inventory Policy Summary table:
Site Name Product Target Service Service Type Coverage Recommended Policy Policy
Name Level Policy Parameter 1 Parameter 2
Facility1 Product1 0.95 Type2 4 s,S 179 180
Warehouse1 Product1 0.95 Type2 0 s,S 0 1
Warehouse2 Product1 0.95 Type2 0 s,S 0 1
Central Warehouse Product1 0.95 Type2 0 s,S 0 1
Manufacturer Product1 0.95 Type2 0 s,S 0 1

Notice that the optimum risk period (i.e. coverage) is provided for the first echelon sites
only. Inventory Simulation addresses only sites with a positive coverage value.
Step2: Run Inventory Simulation
Assume that we want to simulate the recommended Safety Stock Optimization solution
using the real historical demand, as defined in the Demand table. In the Inventory
Simulation Options form, select the checkbox for “Run Simulation Using Historical
Demand”.
You can review the simulation results in the Site Details table under Simulation Output.
You can see the actual performance of the recommended inventory solution through
simulation by observing the achieved service level, average inventory and average
backorders. Since “Type 2 (Quantity fill rate)” was selected for Safety Stock Optimization
in this example, you can observe the simulated service level results in the Fill Qty Rate
field. Similarly, review Average Inventory Units to see the Average Inventory, and
Average Back Order Units to see the Avg Backorders. The tables below show the
comparison between the Site Details Simulation Output and the Inventory Policy
Summary from Safety Stock Optimization:
Site Details
Site Name Fill Qty Rate Average Average Back Initial Inventory
Inventory Units Orders Units
Facility1 1.00 144 0 178
Facility2 1.00 81 0 115
Facility3 1.00 330 0 408
Facility4 1.00 370 0 496
Inventory Policy Summary
Site Name Expected Type 2 Avg Inventory Avg Backorders Target Service
Level
Facility1 0.95 143 0.04856 0.95
Facility2 0.95 81 0.04578 0.95
Facility3 0.95 330 0.04870 0.95
Facility4 0.95 372 0.04878 0.95
Warehouse1 1 0 0.95
Warehouse2 1 0 0.95
Central Warehouse 1 0 0.95
Manufacturer 1 0 0.95
The recommended approach for running Inventory Simulation is to use a longer

simulation run with a generated demand stream. The longer simulation period helps
improve the accuracy of the estimated results from simulation. For example, we now run
our model using a 5-year generated demand series (Simulation Length Set To) with a 6-
month warm-up period (Warm Up Period Set To).
The results based on these settings are shown below.

Site Details
Site Name Fill Qty Rate Average Average Back Initial Inventory
Inventory Units Orders Units
Facility1 1.00 143 0 178
Facility2 1.00 82 0 115
Facility3 1.00 330 0 408
Facility4 1.00 369 0 496
Inventory Policy Summary
Site Name Expected Type 2 Avg Inventory Avg Backorders Target Service
Level
Facility1 0.95 143 0.04856 0.95
Facility2 0.95 81 0.04578 0.95
Facility3 0.95 330 0.04870 0.95
Facility4 0.95 372 0.04878 0.95
Warehouse1 1 0 0.95
Warehouse2 1 0 0.95
Central Warehouse 1 0 0.95
Manufacturer 1 0 0.95
Facility Demand Series

If you use historical demand when running Inventory Simulation, Safety Stock
Optimization must first be run with the "Populate Facility Demand Series" check box
selected in Safety Stock Options. When this option is checked, Safety Stock Optimization
populates the Facilities Demand Series Optimization Output table for all sites: both
customer-facing and non customer-facing.
If you want to populate the Facility Demand Series, your Facilities Propagation method
must be “Demand Series”. If this option is set to “Formula”, the Facility Demand Series
table will not be populated.
Field Description
Site Name The site at which the demand was handled.
Product Name The name of the demanded product at the site.
Demand Date The date on which the demand occurred.
Quantity The quantity of product at the site on the demand date.

Field Description
Scenario ID The identifier of the scenario for which the summary data was generated.
Sub-Scenario ID The identifier of the sub-scenario, if applicable, for which the summary data
was generated. Click on the field guru for the field to open a Scenario Item
Wizard summary table. This table lists the scenario and sub-scenario names, in
addition to the field that is being modified and the operator and value of that
field. The summary table can assist in distinguishing the sub-scenarios both by
name and by their internal values.
Extremely Small Demand Class Threshold

By default, Extremely Small demand occurs when the Non-Zero Demand Mean in the
Customer Demand Profile or Facility Demand Profile is less than 1. With Extremely Small
demand, no inventory policy or associated parameters are recommended during Safety
Stock Optimization.
You can now control the value that is used as the threshold for Extremely Small demand
using the Demand Size threshold option.
To set the Demand Size Threshold – Demand Analysis Options:

1. Select Tools > Demand Analysis. You see the Demand Analysis form.
2. Click Options. You see the Demand Analysis Options form.
3. Click the Set Demand Classification Thresholds button.
4. Enter a value for the Demand Size threshold, then click Ok.
To set the Demand Size Threshold – Safety Stock Optimization Options:

1. On the Optimization ribbon, select Options from the dropdown under Run
Optimization.
2. Select the Safety Stock Options tab.
3. Click the Set Demand Classification Thresholds button.
4. Enter a value for the Demand Size threshold, then click Apply.
Forecast Metrics
You can use the User Defined Customer Demand Profile and User Defined Facility Demand
Profile tables to populate forecast metrics. The metrics are then converted to demand
parameters. The fields that you populate are:
 Demand Mean – Provide the forecast estimate or forecast mean or demand mean.
 Demand Std Dev – Provide the standard deviation of forecast error.
The following information provides additional detail about how to use the forecast
metrics.
Measuring Forecast Performance

There are several measures you can employ to determine how good the forecast data is:
 Mean Absolute Deviation (MAD): Measures average absolute deviation of forecast
from actuals.

1
MAD = --  D t – F t
n
 MAD measures absolute error; therefore, positive and negative errors do not
cancel each other out.
 You want MAD to be as small as possible.
 There is no way to know if the MAD error is large or small in relation to the actual
data.
 Mean Absolute Percentage Error (MAPE): Measures absolute error as a percentage of
the forecast.
n
100 Dt – Ft
MAPE = ------
n  -------------
Dt
t=1
 MAPE measures deviation as a percentage of the actual data.
 You want MAPE to be as small as possible.
 Mean Squared Error (MSE): Measures variance of forecast error. It is the preferred
forecast error measure.
n
1 2
MSE = --
n   Dt – Ft 
t=1
 MSE measures the squared forecast error - error variance.
 MSE recognizes that large errors are disproportionately more “expensive” than
small errors.
 MSE is not as easily interpreted (that is, not as intuitive) as MAD and MAPE.
 Mean Forecast Error (MFE): This is also referred to as forecast bias.
n
1
MFE = --
n   Dt – Ft 
t=1
 MFE should be as close to zero as possible; that is, you want the minimum bias.
 A large positive (or negative) MFE means that the forecast is undershooting (or
overshooting) the actual observations.
 MFE of zero does not imply that forecasts are perfect (error free); rather this
indicates that the forecasts are “on target”.
The standard deviation of forecast error is defined as:
std. dev. of forecast error  R MSE = MSE  1.25  MAD  1.25  MAPE   D
where:
 D : mean demand (or forecast mean or forecast estimate at the end of the forecast
horizon)
D t : observed demand at time t
F t : forecast estimate at time t
n : number of observations
Forecast Error:
1
MAD = --  x i – x
n

Standard Deviation:
2
 =
  xi – x 
---------------------
n
 Forecast error (or uncertainty) can be measured by MAD, particularly in time series
analysis.
 An empirical rule for MAD: The standard deviation for a normally distributed random
variable is theoretically equal to   2 MAD which is approximately 1.25 MAD.
   1.25MAD is true asymptotically; the difference between  and   2 MAD approaches
zero as the sample size goes to infinity.
Lead Time Variability in Multi-Echelon Inventory Optimization

Within multi-echelon inventory optimization (MEIO), the lead time variability is
distributed among the echelons based on their coverage values. Upstream lead time
variability can be pushed downstream, but not the other way around.
For example, assume the MFG production time is N(3,2) Days and the transportation time
from the MFG to the DC is N(4,3) Days.

The total lead time is 3 + 4 = 7 and the total lead time variance is 22 + 32 = 13.
In single echelon mode, the MFG’s and DC's safety stock will cover their own lead time
variability. The coverage mean and variance of the MFG are 3 and 4, respectively. The

coverage mean and variance of the DC are 4 and 9, respectively. From here we can
calculate the safety stock for MFG and DC.
In multi echelon mode, the MFG can push its lead time and lead time variability to the
DC. But we assume that the lead time variance is evenly distributed across the network
(the red line in the graphic above). If the MFG’s coverage is 2 and the DC’s coverage is 5,
then their coverage variance is calculated as follows:
Coverage mean (MFG) = 2
Coverage variance (MFG) = 4 x 2 / 3= 2.67
Coverage mean (DC) = 5
Coverage variance (DC) = 13 x 5 / 7 = 9.29
Cross Period Lead Time

In multi-period modeling, lead time demand variance should be estimated carefully for
the cases where lead times are longer than a period. That is, the lead time demand
variabilities within any period that the lead time crosses through should be taken into
account. In the case where the lead times are shorter than any given period, Supply
Chain Guru solves an independent safety stock optimization model for each period.
However, cases where lead times cross a period makes optimization procedure-
dependent.

In Supply Chain Guru, cross period lead times can be incorporated depending on your
preference. You can use a specific parameter, SUPPORTCROSSPERIOD, to make use of
the cross product lead times as described in the following example. To use the parameter,
you create a User Defined Table called Config_IO, then add two user defined fields to the
table: ParameterName and ParameterValue. The table will automatically include an ID
and Status field. Add a record where ParameterName = SUPPORTCROSSPERIOD and
ParameterValue = 1. When this record is included, Safety Stock Optimization uses the
cross period lead time.
We use the following formula to calculate the variance (V) of demand that has different
variance values in a two-period model.
2 2
V 1  n 1 – 1  + n 1 k 12 + V 2  n 2 – 1  + n k 2
V = -----------------------------------------------------------------------
n1 + n2 – 1
k1 =  – 1
k2 =  – 2
where V1 and V2 are the variance in Period 1 and Period 2, respectively. n1 and n2 are the
period length of Period 1 and Period 2, respectively. ,  1 and  2 are the demand mean
across two periods, demand mean in Period 1 and demand mean in Period 2, respectively.
In the following example, we explain how we derive this equation.
Example 1:
Suppose that we are given a two-period model that has a lead time of 6 months. Each
period is 3 months long. The demand series is given as follows.
Period 1:
mean = (3+2+4)/3 = 3
variance = ((3-3)^2+(2-3)^2+(4-3)^2))/(3-1) = 1
Period 2:
mean = (1+9+5)/3 = 5
variance = ((1-5)^2+(9-5)^2+(5-5)^2))/(3-1) = 16
Notice that demand mean and variance metrics cannot be added in this case. Therefore,
mean and variance over Period 1 + Period 2:
mean = (3+2+4+ 1+9+5)/6 = 4

variance = ((3-4)^2+(2-4)^2+(4-4)^2+(1-4)^2+(9-4)^2+(5-4)^2))/(6-1) = 8
The mean over two periods is calculated by:
n1 1 + n2 2
 = ----------------------
n1 + n2
Variance in each period is calculated by:

2
 in1= 0  X i –  1 
V 1 = -----------------------------
n1 – 1
2
 in 2= n 1  X i –  2 
V 2 = -------------------------------
n2 – 1
Then:
2 2
 in1= 0  X i –  1  +  in 2= n 1  X i –  2 
V 1 = -----------------------------------------------------------------
n1 + n2 – 1
After some elaboration, we have:

2 2
V 1  n 1 – 1  + n 1 k 12 + V 2  n 2 – 1  + n k 2
V = -----------------------------------------------------------------------
n1 + n2 – 1
k1 =  – 1
k2 =  – 2
In Supply Chain Guru, cross period lead times can be incorporated depending on your
preference. If you set the SUPPORTCROSSPERIOD parameter to 1, then Supply Chain
Guru will calculate lead time demand parameters as described above.
Example 2:
Consider the following cases where we solve a single echelon safety stock optimization
problem.
Case 1: Suppose that the production time in MFG (lead time) is given as 15 days for
each period. We also assume that the desired service level is 95% using Type1. We use
1.6446758733396285 for the safety factor (z) for 95% target service level.
Period 1 (30 days) Period 2 (30 days)
Mean 100 100
Standard Deviation 50 100
Safety Stock 319 637

Notice that production time (lead time) is shorter than each period lengths. Safety stock
in MFG in each period is calculated as follows.
2
Safety Stock in Period 1: z  15  50 = 319
2
Safety Stock in Period 2: z  15  100 = 637
Case 2: Cross period lead time option is checked. Suppose that the production time
in MFG (lead time) is given as 60 days for each period. We also assume that the desired
service level is 95% using Type1.
Mean 100 100
Notice that production time (lead time) is longer than each period lengths. Safety stock in
MFG in each period is calculated as follows.
 100
 1 100
 2 100
k1 0
k2 0 2 2
50  30 – 1  + 100  30 – 1 
Standard deviation of demand for Period 1   D1  : ------------------------------------------------ = 78
30 + 30 – 1
z  60   D1
Safety Stock for Period 1: 2 = 999
Standard deviation of demand for Period 2   D2  : 100

Notice that we assume the same variability for the exceeding period.
Safety stock for Period 2: z  60   D2
2 = 1274
Case 3: Cross period lead time option is unchecked. Suppose that the production
time in MFG (lead time) is given as 60 days for each period. We also assume that the
desired service level is 95% using Type1.
Mean 100 100
Notice that production time (lead time) is longer than each period lengths. However, the
user does not desire to take into account the cross period lead time effect. Safety stock in
MFG in each period is calculated as follows.

Network Optimization
2
Safety stock in Period 1: z  60  50 = 637
2
Safety stock in Period 2: z  60  100 = 1274
Notice that total safety stock in Period 1 is lower if cross period lead time effect is not
taken into account.

Safety Stock Optimization can make use of an optional configuration file that sets
parameters used to control solver behavior. When you run Safety Stock Optimization,
parameters are written to the Params.dat file in the <modelname>_InvOptimData folder
by default. If you want to override these values, you can create a Config.dat file. Any
parameters defined in Config.dat will override the settings in Params.dat.
You can now set up and populate the Config.dat file using a user defined table in the
To create the Safety Stock Optimization configuration table:

3. Enter Config_IO as the Table Name. For the Display Name, use the default,
Config_IO, which is the same as the Table Name.
the model.
steps.
set to Other.
6. Click Add.
ParameterValue fields with the options you want to configure. For example, you can
change the Demand Size threshold to 2 by entering DC_ExtremeSmall as the
ParameterName and 2 as the ParameterValue.
The following changes have been made to Network Optimization:
 Expression Count Constraints
 Expression Constraint and Expression Based Cost Input Pipes
 Risk Metrics

 Transportation Policy Fuel Surcharge Basis

 Enhanced Infeasibility Diagnosis
Expression Count Constraints

In previous releases, Expression Constraints only supported the magnitude-based
constraints (Flow Constraints, Inventory Constraints, and Production Constraints).
Expression Constraints have been extended include count constraints (Site Constraints,
Flow Count Constraints, Production Count Constraints, Inventory Count Constraints, and
Work Center Constraints). For example, this functionality enables you to construct
constraints where flow on one lane requires flow on another, basically limiting the number
of new flow lanes in the optimized model.
The Expression Name field has been added to the count-based constraint tables. In
addition, this field now supports a dropdown list of available Expression Name values.
Note: If the Expression Name field is not populated, duplicate Expression Name values
may be generated. Supply Chain Guru ignores the Expression Name duplicate and
reports the duplication error in the ErrorLog.txt file in the
<ModelName>_NetOptimData folder.
In addition, the Count Type field in the count-based constraint tables includes the Define
value.
For example, assume you have the following Flow Count Constraints:
Expression Period Source Destination Product Count Count Source Dest Product Mode Period
Mode
Name Name Site Site Name Value Type Agg Agg Agg Agg Agg
Constraint1 P_03 F3 (All Customers) (All) (All) 2 Min No No Yes Yes No
Constraint2 P_02 F4 Customer1 (All) (All) 3 Min No No No Yes Yes
Constraint3 P_01 F4 Customer1 (All) (All) Define No No No Yes Yes
Constraint4 P_02 F4 Customer1 (All) (All) Define No No No Yes Yes
The Expression Constraint can be defined as follows:
Expression Expression Constraint

Coefficient 1 Expression 1 Coefficient 2 Expression 2
Name Type Requirement
Exp_Combined 2 Constraint3 3 Constraint4 Min 0
This structure allows the solver to determine the value for Constraint3 and Constraint4
based on the relationship between them defined in the Expression Constraint record.
Expression Constraint and Expression Based Cost Input Pipes

Input Pipes are now supported for the following fields in Expression Constraints and
Expression Based Costs.
Expression Constraint Table:
 Expression Name
 Coefficient1

 Expression1
 Coefficient2
 Expression2
 Expression Type
 Expression Requirement
 Status
Expression Based Cost Table:
 Cost Name
 Expression Name
 Fixed Cost Component
 Variable Cost Component
 Variable Cost Type
 Status
Risk Metrics
The new Risk Exposure Summary optimization output table provides counts, averages,
weighted averages and other details of network metrics that you can use to assess risk in
your supply chain. For example, the table reports the number and percent of customers
with demand served by a single source. The table is populated when you run Network
Optimization.
Field Description
Scenario The scenario for which the risk summary data was generated.
# of Customers Displays the count of customers in the solution.
# of Components Displays the count of unique BOM components.
# of Production Sites Displays the count of unique sites at which production occurs.
# of BOMs Used Displays the count of unique BOMs (Bills of Materials) used.
# of End Products Displays the count of unique demanded products.
# of Transportation Modes Displays the count of unique transportation modes available in the
Available model, across all echelons.
# of Transportation Modes Displays the count of unique transportation modes used in the
Used solution.
Average # of Stocking Sites Displays the average number of sites holding each product in
per Product inventory across all products. For example, if Product 1 is held at 3
sites and Product 2 is held at 5, the average number of stocking
sites per product is 4. Note: Only the products that are produced
in the network are considered as part of this metric.
Average # of Products per Site Displays the average number of products leaving each site across
all periods.

Field Description
Average # of Production Sites Displays the average number of production sites across all
per Product products. For example, if Product 1 is produced at 2 sites and
Product 2 is produced at 3, the average number of production
locations per product is 1.5.
Weighted Average Site Displays the quantity weighted average of all capacitated sites
Utilization (those with a Fixed Operating Cost Capacity). For example, MFG_A
is utilized 20% for 100 units and DC_B is utilized 40% for 200
units. This value is calculated as:
(0.2*100 + 0.4*200)/(100 + 200) = 0.333
Weighted Average Work Displays the quantity weighted average of all capacitated work
Center Utilization centers (those with a Fixed Operating Cost Capacity). For
example, WC_A is utilized 20% for 100 units and WC_B is utilized
40% for 200 units. This value is calculated as:
(0.2*100 + 0.4*200)/(100 + 200) = 0.333
Weighted Average Distance Displays the quantity weighted average distance (by lane) on
(Customer Flows) Customer Flows. This value is calculated as:
Flow Units * Distance (by lane) / Total Flow Units
Weighted Average Distance Displays the quantity weighted average distance (by lane) on
(Interfacility Flows) Interfacility Flows. This value is calculated as:
Flow Units * Distance (by lane) / Total Flow Units
Max Distance to Customer Displays the maximum of the distances from facilities to
customers.
# of Customers Single Displays the number of unique customers where demand is served
Sourced by a single facility source.
% of Customers Single Displays the percentage of customers where demand is served by

Sourced a single facility source.
% of Demand Single Sourced Displays the percentage of demand that is served by a single
facility source.
Amount of Revenue Single Displays the total revenue for customer demand that is served by
Sourced a single facility source.
# of Products with a Single Displays the number of products where production occurs at a
Manufacturer single manufacturer.
% of Products with a Single Displays the percentage of products where production occurs at a
Manufacturer single manufacturer. This is the number of products with a single
manufacturer / count of unique manufactured products.
# of Sites Handling Majority of Displays the count of sites that handle greater than 50% of the
Demand total demand quantity. Handling product in this case means the
throughput of the site; that is, flow going out of the site.
# of Single Sourced BOM Displays the count of products used as components in bills of
Components materials that are sourced from a single site source.

Field Description
# of Sites at Capacity Displays the number of sites at the highest capacity level
available. This metric only considers a site to be at capacity if it
has an “Infinite” step defined and reaches this capacity level. For
example, if the site has a Fixed Operating <Cap,Cost> of
<0,50000><1500,100000><3000,INF>
it is at capacity if it reaches throughput of 3000.
% of Sites at Capacity Displays the number of sites at the highest capacity level available
/ (total site count). This metric only considers a site to be at
capacity if it has an “Infinite” step defined and reaches this
capacity level. For example, if the site has a Fixed Operating
<Cap,Cost> of
<0,50000><1500,100000><3000,INF>
# of Work Centers at Capacity Displays the number of work centers at the highest capacity level
available. This metric only considers a work center to be at
capacity if it has an “Infinite” step defined and reaches this
capacity level. For example, if the work center has a Fixed
Operating <Cap,Cost> of
<0,7000><150,10000><400,INF>
% of Work Centers at Capacity Displays the number of work centers at the highest capacity level
available / (total work center count). This means the work center
is at the highest capacity level available. This metric only considers
a work center to be at capacity if it has an “Infinite” step defined
and reaches this capacity level. For example, if the work center
has a Fixed Operating <Cap,Cost> of
<0,7000><150,10000><400,INF>
Scenario ID The identifier of the scenario for which the risk summary data was
generated.
Sub-Scenario ID The identifier of the sub-scenario, if applicable, for which the risk
summary data was generated. Click on the field guru for the field
to open a Scenario Item Wizard summary table. This table lists the
scenario and sub-scenario names, in addition to the field that is
being modified and the operator and value of that field. The
summary table can assist in distinguishing the sub-scenarios both
by name and by their internal values.

Network Optimization can make use of an optional configuration file that sets parameters
used to control solver behavior. When you run Network Optimization, parameters are
written to the GURU_OPTIONS.DAT and SOLVER_OPTIONS.DAT files in the
<modelname>_NetOptimData folder by default. If you want to control parameters that
are not available in Optimization Options, you can create a config.dat file.
You can now set up and populate the config.dat file using a user defined table in the

To create the Network Optimization configuration table:

3. Enter Config_NO as the Table Name. For the Display Name, use the default,
Config_NO, which is the same as the Table Name.
the model.
steps.
set to Other.
6. Click Add.
ParameterValue fields with the options you want to configure.
Transportation Policy Fuel Surcharge Basis

The Transportation Policy table includes a Fuel Surcharge field. In previous releases, this
value represented a fixed value fuel surcharge. A new Fuel Surcharge Cost Basis field lets
you define the Fuel Surcharge as either a Fixed Value or as a Percentage of the Average
Cost. The default value for Fuel Surcharge Cost Basis is “Fixed Value”.
When you set the Fuel Surcharge Cost Basis to Fixed Cost, the Fuel Surcharge is always
calculated as a Distance-based cost, regardless of the Cost Basis value on the
Transportation Policy record:
Flow Units * (Distance * Fuel Surcharge)/(Shipment Size/Product Weight)
For example, assume the following values:
Average Fuel Cost Shipment Shipment Size Product Flow

Distance
Cost Surcharge Basis Size Basis Weight Units
150 .05 Qty 100 2 Weight 5 1000
In this case, the cost based on the Transportation Cost is calculated as:
Flow Units * (Average Cost/(Shipment Size/Product Weight)) or
1000 * 150/(2/5) = 375000
The Fuel Surcharge is calculated using a cost basis of Distance:
Flow Units * (Distance * Fuel Surcharge)/(Shipment Size/Product Weight) or
1000 * (100 * .05)/(2/5) = 12500

The Flow Transportation Cost is the cost based on Average Cost plus the cost based on
the Fuel Surcharge:
375000 + 12500 = 387500
When Fuel Surcharge is defined as a Percentage, the Fuel Surcharge is applied as a
percentage of the Average Cost. Using the example data above, the Transportation Cost
is the same (375000):
The Fuel Surcharge is calculated as:
Flow Units * (Average Cost * Fuel Surcharge) or
1000 * (150 * .05) = 7500
The Flow Transportation Cost is the cost based on Average Cost plus the cost based on
the Fuel Surcharge:
375000 + 7500 = 382500
Enhanced Infeasibility Diagnosis

You can set up Network Optimization so that if an infeasibility is detected, Infeasibility
Diagnosis is automatically run using a sequential optimization process.
You specify this option for each model, using an option in the Optimization Options.
To enable automatic Infeasibility Diagnosis:

1. Open Optimization Options and select the Infeasibility Options tab.
2. In the Network Optimization Options, select the method of Infeasibility Diagnosis you
want to use:
 Constraint Checker Off – When this option is selected, Network Optimization runs
without using the sequential optimization constraint checking process. If an
infeasibility is detected, it is reported with a Status of Infeasible in the model
queue.
To set this option in a scenario item, select the “Network Optimization Infeasibility
Diagnosis” Infeasibility Diagnosis Option and enter 0 as the value. When this
option is set, you can run Infeasibility Diagnosis and the currently selected
Infeasibility Diagnosis Option is used. For Network Optimization, you should select
either Network Optimization: Constraint-based or Network Optmization: Path-
based.
 Constraint Checker On – Use this option when models are likely to be infeasible.
When this option is selected, Network Optimization runs the sequential
optimization constraint checking process to identify constraints or missing
structure that is causing the model infeasibility. Constraint conflicts are reported in
the Constraint Summary table and structural issues in the Customer/InterFacility/
Production Flows tables.
Diagnosis” Infeasibility Diagnosis Option and enter 1 as the value.
 Constraint Checker in Background – When this option is selected, Network
Optimization runs. If an infeasibility is detected, it automatically runs the
constraint checking process to identify constraints that are causing the model
infeasibility. Constraint conflicts are reported in the Constraint Summary table.
Diagnosis” Infeasibility Diagnosis Option and enter 2 as the value.

3. Run Network Optimization. If you have selected “Constraint Checker On” or

“Constraint Checker in Background”, and Supply Chain Guru detects an infeasibility, it
will automatically run a constraint checking process. The Status in the Model Queue is
reported as “Complete - Infeasibility Detected”. Infeasibilities are reported in the
Constraint Summary optimization output table and, if applicable when using
“Constraint Checker On”, in Customer, Interfacility and Production Process Flows
output tables.
Simulation
The following features have been added to Simulation:
 Python Script Support
 Process by Order Number Policy
 Shelf Life
 Dwell Time
Python Script Support

LLamasoft has implemented Python® to help in creating custom scripts for use in
Simulation. You can still use Guru Script, the proprietary language for creating custom
business logic. However, you can now use Python as an alternative.
Python is an interpreted, object-oriented, high-level programming language with dynamic
semantics. Its high-level built in data structures, combined with dynamic typing and
dynamic binding, make it very attractive for Rapid Application Development, as well as
for use as a scripting or glue language to connect existing components together. Python's
simple, easy to learn syntax emphasizes readability and therefore reduces the cost of
program maintenance. Python supports modules and packages, which encourages
program modularity and code reuse. The Python interpreter and the extensive standard
library are available in source or binary form without charge for all major platforms, and
can be freely distributed.
The Supply Chain Guru user interface enables you to interact easily with the Python
scripts.
Note: Python scripts are not supported when uploading to or solving on the Cloud.
Simulation Options
The following option has been added to the General Options tab in Simulation Options:
Option Description
Python Script Folder Use this option to set the folder in which Python scripts for use in
Simulation are located.
Python Script Import

You can set up a Python file as a script for use with Simulation using the Script Editor.
To include a Python script:

1. On the Simulation ribbon, click Script Editor. You see the Script Editor form.

Simulation
2. Select File > New > Python Script, or select New Python Script from the
dropdown list next to the New button.
3. If you have not set the Python Script Folder in Simulation Options, you are asked if
you want to set the folder value. Click OK to set the Python Script Folder. You see the
Browse For Folder window.
4. Select the folder in which the Python script files for the model are located and click
OK.
5. Select the Script File Name from the dropdown list.
6. Select the Script Type from the dropdown list.
7. Enter the script Method Name. This is the method you have defined within the script.
8. Click OK. The script is displayed in the Script Editor form. The parameters show the
Name, MethodName and Type. The ScriptLanguage is PYTHONSCRIPT. This
information is written to the Scripts table in the model database.
Note: Python scripts are not editable within the Script Editor.
The script will now be available for use in table fields based on the Script Type. For
example, if you defined a script with a Script Type of “Mode Selection Rule”, this script will
now be available as a selection in the Transportation Policies Mode Rule field.
Process by Order Number Policy

A new Sourcing Policy, Multiple Sources(By Order Number), has been added that allows
you to create orders containing multiple demand lines. If you enter an Order Number
value in the Demand table and you select Multiple Sources(By Order Number) as the
value for Sourcing Policy in the Sourcing Policies table, Simulation groups all the demand
lines of that order into a single order. In this way, an order can have multiple items or
products.
The policy first attempts to fulfill the demand without splitting up any of the products
from the order. The selection is made by order of preference. Thus, the site selects the
source based on input defined in the Policy Parameter field. When the order comes in,
source sites are checked by the order of preference for adequate inventory to fill the
order. The first site that meets the necessary inventory is selected as the source site. If
none of the sources have enough inventory to fill the order, the order is then split and
each product is checked against the order of preference.
Shelf Life
Shelf Life is now supported in Simulation. As a product moves through the supply chain,
its relative age is tracked and compared to the Shelf Life.
You can use the Shelf Life field in the Products table to determine the maximum number
of days for which a product can satisfy demand. Once this limit is reached, the product
expires. When the product expires, it is removed from available inventory and added to
the cumulative scrap output. You can use this feature to model and track expiration
dates, to determine how early products should be pre-built, and to track the life span of
the product.
Enter the Shelf Life in the Products table as a number of days, using a non-negative
integer value.
Initial inventory is treated as if it came into the system at the start of the model horizon;
therefore, it is available to meet demand at the beginning of the model horizon.

Note: If Min Dwell Time is used in conjunction with Shelf Life, the relative age of the
Initial Inventory is the start of the model horizon minus the Min Dwell Time value.
For example, assume the model starts on January 10th, 2016 at 1pm and the Min
Dwell Time field has a value of 2 days. The model will use a date of January 8th,
2016 at 1pm as the initial inventory creation date to track shelf life for the initial
products.
Simulation tracks the shelf life time series in the SCRAPSHELF.TXT file generated in the
<ModelName>_NetSimData folder.
Dwell Time
Simulation can now use the Min Dwell Time and Max Dwell Time for site-product
combinations in the Inventory Policies table. You can use the Min Dwell Time field to
determine how long a product must remain at the site. The product will not be available
to satisfy demand until the Min Dwell Time has been reached. These products are
considered part of inventory. You can use the Max Dwell Time to limit how long, in days,
a product can remain at the site. Once this limit is reached, the product expires. At an
inventory review, if the product has exceeded its Max Dwell Time at the site, it is
removed from available inventory and added to the cumulative scrap output. You can use
this feature to determine how early products can or should be pre-built, and when they
should be pushed out from a site. If you are using ShipTo business logic, Dwell Time can
be used to define cross docking. Additionally, you can use Dwell Time to define seasonal
production methods.
Initial inventory is treated as if the Min Dwell Time was reached at the start of the model
horizon; therefore, it is available to meet demand at the beginning of the model horizon.
Enter the Min Dwell Time and/or Max Dwell Time in the Inventory Policies table as a
number of days, using a non-negative integer value.
Simulation tracks the dwell time as a time series in the SCRAPDWELL.TXT file generated
in the <ModelName>_NetSimData folder.
Greenfield Analysis
Greenfield Analysis Custom Constraints

You can now create, import and select custom constraints for use with Greenfield
Analysis. Custom constraints provide a mechanism to complement the Greenfield
Analysis code in the .bim files. It enables you to model behavior that the solver is capable
of doing, but the user interface does not support.
You can use special custom MOSEL custom constraint files (.mos files) to define the
custom constraint. If the customization needs additional data, the data can be specified
in an accompanying .dat file. The dat can contain the actual data or can specify the
schema for user defined input tables that you populate with the data. For advanced use
only.
You control the Custom Constraints in Optimization Options using the Greenfield Opt.
Constraints File option. This option enables you to select an existing custom constraint for
use in Greenfield Analysis. To set this value in a scenario, select “Greenfield Analysis
Constraints File” as the field and enter the name of the Custom Constraint.

General
General
Error Log Reporting

When running a model, Supply Chain Guru performs data validation to ensure that fields
contain valid values and that model structure is valid. If it encounters an issue with model
data, details of the problem are written to ErrorLog.txt in the location when input files are
generated (such as the <ModelData>_NetOptimData folder during Network
Optimization). These issues do not necessarily cause the solve to fail. If errors are written
to the ErrorLog.txt file, the Detailed Status History will provide a link to this file. Click on
the link and the file is opened in a text editor such as Notepad.
Model Download from and Upload to the Cloud

SupplyChainGuru.com has been updated to 8.4. Models uploaded to the Cloud will have a
database version of 80421, based on the database version for the 8.4 release. As a
result, you will not be able to download models from SupplyChainGuru.com to the 8.3 or
8.3.2 versions of Supply Chain Guru, since the model database version is not supported.
Supply Chain Guru version 8.3 and 8.4 models can be uploaded to the Cloud using the
Upload feature in Supply Chain Guru. However, models from versions prior to 8.3 must
be uploaded using the Upload feature in SupplyChainGuru.com.
Classic Status Screen

The option to display the classic status screen for Optimization and Simulation (Use
Classic Optimization/Simulation Status Screen) has been removed from Application
Settings.
Security
In order to increase security, the Show Password option has been removed from the
Cloud, RateWare XL and K2 Enterprise tabs in Application Settings.
Issues Resolved in Version 8.4

CS-867: Network Optimization failed during input file generation with invalid Processes –
In a specific model, Process records existed that had no Process Name and no Process
Step. These field values are required for valid Processes. When the model was run in
Network Optimization, it failed to generate the input files. The invalid Process records are
now ignored during input file generation and the model solves successfully.
Simulation
SIM-302: Operating costs are not calculated properly when Capacity Period is set to
Period Length – In multi-period models, when the Capacity Period is set to Period Length
on the Sites table, the fixed operating cost is not calculated for each period when the site
is utilized. This function works properly when the Capacity Period is set to Day, Week,
Year, etc.

SIM-326: Site Details Output - Average Inventory with periods – Average inventory was
reporting cumulatively over the model horizon instead of period by period. This is now
reported correctly on a period by period basis.
SIM-368: Shipment Mileage Log reports excessive mileage for first leg when using assets
– When assets were used, the Shipment Mileage Log reported a 'first leg' with excessive
mileage. The ‘false’ dispatch leg is not longer reported for assets located at the origin.
SIM-396: Work Resource Consumer Queue does not produce output – If you enabled the
Work Resource Consumer Queue in Simulation Options, output was not produced. The
Work Resource Consumer Queue now reports output.
SIM-401: Network Summary - Avg Fill Rate, Avg Fill Qty Rate, Avg Ready Rate incorrect –
When running a simple model without periods, these three metrics were reported as 0 on
the Network Summary. When running a model with periods defined, all three metrics
reported the same number - the Avg Fill Qty Rate value. The calculation process has been
updated to reflect appropriate values.
SIM-404: MCD does not write properly to allow Queue statistics – The MCD was not
building information correctly to match what SimServer was expecting for output queue
statistics. Queue statistic initiation strings are now correct.
SIM-413: Customer Summary Output - On Time/On Time Qty rates – The Customer
Summary output table On Time and On Time Qty rates report 100% regardless of the
underlying transaction data. The Customer Details table does show the correct calculation
by product.
BUG-183: SimServer is not shutting down when exiting Supply Chain Guru – After
running a model in Simulation, when existing Supply Chain Guru, the SimServer64.exe
(or SimServer.exe) process was not being closed. Simulation no longer launches the
SimServer process in this way, so the problem is resolved.
BUG-318: Opening Script Editor can crash if SimServer process is still running – If you
have run Simulation and the SimServer process did not successfully close, open the
Script Editor can result in a crash. Simulation no longer launches the SimServer process
in this way, so the problem is resolved.
VRP-534, VRP-535, VRP-536, VRP-699, VRP-765: Inconsistent count of in-transit stops
across problem types – The determination of which stops were counted as in-transit stops
was inconsistent between Standard VRP and other problem types such as Interleaved
Optimization. As a result, service-related costs at stops often differed between the
problem types.
Constraint violations with Max Duty Time Per Route – Constraint violations in the solver’s
time scheduler regarding max duty time per route have been resolved.
Improved solution quality in Inventory Optimization with small asset availability quantity
– An issue in column generation that improve the solution quality for interleaved
optimization when the asset availability quantity is small has been resolved.
GCX-566: Transportation Optimization Options crashes if dates in Options table are in
non-US format – In some cases, the Vrp_BeginTimeHorizon and Vrp_EndTimeHorizon
fields in the Options table were populated with dates in non-US format. This caused a
crash when accessing Transportation Optimization Options. If Supply Chain Guru detects
a Vrp_BeginTimeHorizon date in non-US format, it resets it to the first day of the current
calendar year. If Supply Chain Guru detects a Vrp_EndTimeHorizon date in non-US
format, it resets it to the last day of the current calendar year.

Issues Resolved in Version 8.4
GCX-608: Generate Detailed Routes for Map Display is failing for specific model – In a
case where a specific detailed route could not be calculated, the error returned was not
handled and the generate detailed routes process failed. The error is now handled
correctly. When routes cannot be calculated, they are displayed as straight lines.
CS-1094: Per Unit Cost All Item Discount not working – When the All Item Discount
option for Per Unit Cost was applied, this was not correctly written to the input file. As a
result, the Per Unit Cost was using the Incremental Discount in all cases. The rate
information is now correctly written based on whether or not the All Item Discount option
is selected.

IOS-207: Lead Time Bucket Precision is not currently used during Safety Stock
Optimization – Setting a specific value for the Lead Time Bucket Precision Safety Stock
option was not being used when the model was solved. This has been resolved.
IOS-219: Demand Propagation failed – In a specific model that had no customer demand,
but had demand override defined, and the customer-facing site had a BOM defined,
demand propagation failed. Demand Propagation no longer fails.
IOS-223: Multi-Period model may have incorrect Lead Time Demand Distribution – In a
specific multi-period model, the Lead Time Demand Dist was reported as “Mixture of
distributions” rather than “Normal”. The correct Lead Time Demand Dist is now reported.
IOS-224: Inter-Demand Interval Mean may be reported as <1 – In a specific model, the
Inter-Demand Interval Mean was reported as less than 1. This incorrect value is no longer
reported.
GCX-506: Clear Demand Analysis Output is hanging – The Clear Demand Analysis Output
function in Table Utilities could hang the application. This has been resolved and Clear
Demand Analysis successfully empties the appropriate output tables.
Greenfield Analysis
GCX-659: Greenfield Service Input Service Distance incorrectly scaled with Metric units –
When the Measurement System was set to Metric Standard, the Input Service Distance
reported in the Greenfield Service output table was incorrectly scaled by 1.6. The actual
constraint was correct, but the reporting was inaccurate. The value is no longer scaled
when reported in Greenfield Service and matches that entered in the Greenfield Service
Constraints table.
Maps
GCX-600: Crash when selecting Site layer on the map view – In a specific project, when
selecting an existing Site layer in the Layer Navigator, the application crashed. The issue
was a null value for the Color combo box. This value is now handled correctly.
GCX-648: Application crash when displaying Simulation Output Site layers – When
displaying a Site layer on the map, if the layer used one of the Simulation Output tables
for site display, Supply Chain Guru failed. This has been resolved, and any of the
Simulation Output tables can be selected as a source for the Site layer.
GCX-698: Date Value In Route Gantt Chart alignment incorrect – On the Route layer
Gantt Chart, the date at the top of chart would “float” over the various date segments
below. This caused confusion. These dates (the date of each Sunday) are not affixed to
the segment representing that Sunday date.

Tables and Grids

GCX-255: Error message updating column values with filter on Notes field – With a
specific model, if a filter was applied to the Notes field in the Sourcing Policies table,
trying to update field values using the Column Update feature resulted in an error
message being displayed. This error has been resolved.
GCX-371: Filters on Tabular Reports do not support Unicode characters – When creating
filters on Tabular Reports, Unicode characters (such as Chinese characters) were causing
a crash. This no longer occurs.
GCX-654: Expression Constraints: Editing Expression Name results in circular reference -
rename not completed – When editing the Expression Name in the Expression Constraints
table, a circular reference kept the rename from taking effect. If you confirm the
dependent table reference, the rename now occurs successfully.
Routing
BUG-195: Co-located sites get incorrect Transport Time from a previous record when
using Road Distance – When using Road Distance with Bing as the provider, Origin and
Destination sites that were co-located (that is, have a Distance = 0) were incorrectly
getting the Transport Time value from the previous record. This no longer occurs.
CS-1030: Distance Matrix Calculator tool crashes when using PC*Miler as Provider with
"Matrix Calls" option turned off – When using PC*Miler as the provider, if you unchecked
the "Utilize PCMiler Matrix API Calls" option, Supply Chain Guru crashed. PC*Miler now
works correctly whether or not you have selected the “Utilize PCMiler Matrix API Calls”
option.
Note: The Matrix API call option significantly increases the speed of calls but requires
special licensing at an additional cost.

Chapter 2
Known Issues
LLamasoft is aware of the following issues that all users should be aware of. In some
cases, a workaround to the issue has been provided.
Installation
 Set Bing Key link on 32-bit systems – During the installation process the ArcGIS
Engine Runtime is updated to version 10.0.4400. In order to allow Supply Chain Guru
to display Bing basemaps, you must enter your Bing Key in an ArcGIS utility. On
machines with 32-bit operating systems, the program menu option for Set Bing Key
does not work.
Workaround: In File Explorer, navigate to C:\Program Files\ArcGIS\Engine10.0\bin.
Run the SetBingKey.exe program, enter your Bing Key and click OK.
 Installation – There may be an issue with the installation program shortcut when a
non-Administrator attempts to install Supply Chain Guru over an older version of
Supply Chain Guru that was installed using a different account. When this occurs, and
the non-Administrator user double-clicks on the Supply Chain Guru desktop shortcut,
you see the error “The feature you are trying to use is on a network resource that is
unavailable.”
Workaround: Delete the desktop shortcut. Create a new shortcut that points to
SCGuru.exe in the Supply Chain Guru installation folder (such as C:\Program Files
(x86)\Supply Chain Guru).
 SQL Server with Supply Chain Guru – In order for Supply Chain Guru to work
correctly with SQL Server models, you must have ‘Full control’ permissions to the
Basic Supply Chain Database.mdf and Basic Supply Chain Database_log.ldf files in the
Supply Chain Guru installation folder. You can set these permissions by right-clicking
on the file and selecting Properties. Use the Security tab to set the Permissions for the
Users group. This group should have ‘Full control’ set to Allow.
 BUG-123: Installer is putting language database files in the Program Files folder – The
installer is posting an extra copy of the language database files
(Language_Chinese.mdb and Language_Spanish.mdb) to the Program Files (x86)
folder on 64-bit systems and in the Program Files folder on 32-bit systems. These are
also deployed to the Supply Chain Guru installation folder so it is not causing an issue
with Supply Chain Guru.

Known Issues
Licensing
 GCX-697: Roaming Licenses occasionally do not release all product licenses – When
roaming, selecting Stop Roaming after restarting Supply Chain Guru may not release
all product licenses. You may see a number of days remaining in the About Guru form.
Workaround: If this occurs, click Stop Roaming again. You can also use the
LicenseMaint.exe in the Supply Chain Guru installation folder to Start and Stop
Roaming.
Models and Projects

 BUG-54: Changes to Project Documents are not detected when opening a new project
– When making a change to Project Documents, these are not detected as project
changes. If you subsequently open an alternate project, you are not warned to save
the project and these changes are lost.
 BUG-128: Excluded products used in Product Substitution groups are not removed
during expansion – If a product is used in a Product Substitution group and the
product itself is excluded, this product is still in the expanded version of the model.
 BUG-234: A new project can be opened while Vehicle Route Optimization is running –
When running a Vehicle Route Optimization, if you select File > New Project, you are
warned that Optimization is running and you cannot close the Vehicle Route
Optimization window at this time. However, the current project is still closed. When
you then re-open the project, there is a warning that the model needs to be recovered
due to improper program termination.
 BUG-327: Removing a SQL Server model from project does not detach the model
database – If you remove a SQL Server model from a project, it is not automatically
detached.
Workaround: Run the SQLServerConsole.exe application in the Supply Chain Guru
installation folder, select the model name and click Detach.
 SCG-1317: Multi-Period Transportation Policy records do not support separate Mode in
Access models – In an Access model, you cannot create two Multi-Period
Transportation Policy records that differ by Mode. For example:
Period_001 -> DC_1 -> CZ -> Product_1 -> Customer Delivery
Period_001 -> DC_1 -> CZ -> Product_1 -> Expedited
Workaround: Convert the model to SQL Server.
Input Pipes
 BUG-50: The "(Input Pipe)" prefix is not added to all fields that can accept an input
pipe – This is a display issue only. The input pipe will still function correctly. For
example, the following fields in the Transportation Policies table will not show the
prefix: Transport Time, Cost, Average Cost, Distance, and Return Trip Time.
 BUG-159: Input Pipes with null values may be treated differently with in-memory vs
manual expansion – If mapped input pipe records have null values for the field to be
populated (such as Average Cost), and the default when the input pipe does not
match is INF, manual expansion excludes these records. In-memory expansion
includes them in the model input files.
 BUG-194: Deleting an unused Data Source deletes an internal table in another Data
Source – In this case, the model has two data sources: an internal table that is being
used in an input pipe and a second one based on an Excel spreadsheet that is not in
use. Note that both data sources use the same Table/Sheet name. Deleting the Excel-

Known Issues
based data source actually deletes the internal table that is used by the other data
source.
 BUG-390: Model fails to generate input files due to extremely large CSV file input pipe
– In a case there a model uses a CSV file with over 11 million rows, Network
Optimization fails trying to generate the input files.
Greenfield Analysis
 BUG-13: Greenfield Analysis failure when Sites are not GeoCoded – If Sites have
Latitude and Longitude values of 0, Greenfield Analysis can fail.
Workaround: GeoCode all Sites prior to running Greenfield Analysis.
 CS-1093: Greenfield Service Constraint Distance input is not correct for Metric units –
When the Measurement System in Model Options is set to Metric Standard, the
Distance written from the Greenfield Service constraint table is not being converted.
As a result, a constraint distance of 600 is interpreted as 600 miles.
Workaround: Manually convert the number of kilometers required to the distance in
miles and enter that value in the Greenfield Service Distance field.
 BUG-41: Avg Ship Weight is incorrect for some records in unexpanded model – With a
specific model, the Avg Ship Weight for several records is different in the unexpanded
model than in the expanded version.
 BUG-69: Production costs are not correctly reflecting multiple BOMs on a Make policy
– This is a case where two or more Sourcing Policies that use “Make (BOM -
Probability)” in a split. Each of the Sourcing Policies has a different Avg Unit Cost
value. When the model is optimized, the Avg Unit Cost for the last “Make (BOM -
Probability)” Sourcing Policy defined is used for all.
 BUG-102: Verify Model with multiple policies for the same product-site combination -
Verify Model may generate an error when excluded policies are present in cases
where there are several policies for the same product-site combination.
 BUG-103: Optimization fails while creating a file when file path is close to max length
– When the file path to the model project is greater than 240 characters, Optimization
fails.
 BUG-113: Book Value calculation does not seem to be working correctly – The
specification for this feature indicates that Book Value can be entered both in whole
number format and in shorthand format:
For example, <50000|10000> would be read just the same as <50K|10K>
Supply Chain Guru currently only accepts the shorthand version (<50K|10K>).
Workaround: Enter the Book Value using K for thousands and M for millions.
 BUG-115: Interfacility Flows are not generated if the model contains Shelf Life values
and has Bundle All Customer Demand option selected – If a model has Shelf Life
populated for a product and the Bundle All Customer Demand option is selected on
the Constraints tab of Optimization Options, Interfacility Flows for that product are
not generated.
 BUG-125: Transportation Asset Summary reporting issues – In a specific model, when
more than one asset is included, the Number of Trips for each of the assets is
extremely large (46105 and 23360).

Known Issues
 BUG-133: Gross capacity is violated when Yield is used – If the Yield forces production
of a product to be greater than a work center capacity, this capacity may be violated
in order to meet the demand.
 BUG-134: Products used in Product Substitution are not reflected in the Inventory
Optimization Output table – When a product is used in a Product Substitution group,
the regular product is reflected in the Inventory output table, but the substitution
product is not. It is reflected in the Productions output table.
 BUG-164: Site-based Carbon Cost is not reflected in Facility Summary cost – When a
site-based Carbon Cost is defined, the Facility Summary shows a Total CO2 value, but
there is no associated Total CO2 Cost. The cost appears to be accounted for in the
Network Summary.
 BUG-166: Depreciation does not reflect the Period Length – When optimizing models
where the periods are of varying length, the Financial Summary table shows the same
Depreciation taken for each period, regardless of the length of the period.
 BUG-167: Optimized Units for Transportation Assets not correct – In a specific case,
the value calculated for Optimized Units in the Transportation Asset Summary table is
not correct.
 BUG-214: Generate Network Paths not always successful with SQL models – In
specific cases, Generate Network Paths fails on a SQL Server model, but succeeds
when the model is converted to Access.
 BUG-220: Network Path generation does not calculate revenue data correctly – When
there is revenue data generated in an NO run (flow units X product price), this data is
reported in Customer Flows, Network Summary, and Financial Summary. However,
Network Path generation is not listing out revenue statistics for each path generated.
It shows '0' for every path generated.
 BUG-233: Work Resources are not used when on Transportation Policies – When Work
Resources are assigned to the Load Resource or the Unload Resource on
Transportation Policies, these Work Resources are not used.
 BUG-298: Verify Model may report incorrect results for BOMs – Verify Model will
incorrectly report errors when BOMs have Byproducts or End Products. Incorrect
errors are also reported when the Sourcing Policy is set to Make (BOM-Probability) or
Make (Single BOM).
 BUG-364: Accumulated Depreciation field in Network Summary is not always
populated – In some cases, the Accumulated Depreciation field in Network Summary
may not be populated.
 BUG-373: Facility Fixed Cost change using a scenario is not reflected in Network Paths
– For a model that changes the Facility Fixed Cost through a scenario, the Total Fixed
Operating Cost in the Network Summary correctly reflects the update. However, when
Generate Network Paths is run, the Facility Fixed Cost field in Network Paths does not
reflect the change. Note: The FacilityFixedCost# fields are not currently exposed in
the user interface.
 BUG-392: Financial Summary (and other tables) not applying the Discount Rate
(NPV) – Values for costs in the Network Summary, such as Transportation Cost, have
the Discount Rate (NPV) from Model Options applied. The Discount Rate (NPV) is not
being applied in the Financial Summary, Customer Flows and Interfacility Flows
output tables.
 BUG-410: Sub-scenarios fail when a scenario is used to change the NPV Discount
Rate by more than one value – If you create a scenario item to change the NPV
Discount Rate by more than one value (resulting in multiple sub-scenarios), these
sub-scenarios will fail.

Known Issues
 SCG-401: Network Paths may not include all Production Costs in multi-period model –
In cases where the demand that uses specific production is actually in the next
period, the Network Path may not include the Production Cost for the period where
the production occurred.
 SCG-2169: Model fails if Open/Close Relations uses a group set up with “Treat as
individuals” – If you create an Open/Close Relations constraint using a group defined
as “Treat as individuals”, Network Optimization will fail.
Workaround: You should set up Open/Close Relations that use groups only defined as
“Set” or “Aggregate into Group”.
 Optimization Status displays “Processing” after failed run – When running a Network
Optimization that fails, the Model Queue correctly shows the Status as “Failed”.
However, the Optimization Status form shows the Status as “Processing”.
Simulation
 BUG-30: The Script Editor loses script text when a property is changed and the script
is reopened – If you enter text into the script body and save the script, then change
one of the script Properties and close and reopen the Script Editor without again
saving the script, the text you entered is no longer in the script.
 BUG-52: Lognormal Transport Time – In some cases, defining the Transport Time as a
Lognormal distribution can result in excessively long transportation times.
 BUG-278: Output not correct when date format is non-standard for US region – When
the computer setting for date format is set to something non-standard for the
specified region, Simulation output may be incorrect. In some cases, data is not read
into some of the output tables, such as Demand Transactions. Additionally, date
values in populated tables may be incorrect.
 BUG-303: Simulation Script compilation may fail when auto-complete is used to build
the script – In some cases, using the auto-complete feature when defining a
Simulation Script results in an invalid script definition that fails to compile when
Simulation is run.
Workaround: Manually enter the text without the auto-complete feature, or define the
script in an external editor and copy into the Script Editor.
 BUG-322: Script Editor: Incorrect auto complete for Context.WorkStep – When
scripting a Process Routing Rule, Context.WorkStep should give the autocomplete
option of WorkCenterName. Instead, it gives WorkCenter.Name which is an invalid
identifier.
Workaround: Manually edit the script to enter the correct context value.
 BUG-323: Script Editor: Incorrect auto complete for Context.ProcessLot.DueDate –
When scripting a Process Routing Rule, the auto complete should provide
Context.ProcessLot.DueDate. However, it is currently supplying
Context.ProcessLot.DateDue.
Workaround: Manually edit the script to enter the correct context value.
 SIM-94: Nested Script Call Crash – SimScript does not support nested script calls.
 SIM-95: Assets not respecting Transport Time when they are set to a different base –
When assets re-base, the origin and destination latitude and longitude are used to
determine distance, then divided by asset speed to decide how long to move. This
completely ignores any lanes or other structures that the user has set up.
 SIM-131: Make by Schedule policies and BOMs do not work together.

Known Issues
Workaround: Create a dummy manufacturing site that assembles components to

create a 'raw material' that is then converted by the actual manufacturing site in
response to a Make by Schedule production order.
 SIM-243: Containers do not disaggregate when the transportation policy is Pooled
Outbound – At intermediate stops of a pooled outbound route, pallets do not
disaggregate suggesting that the destination never receives the product. This error
impacts on-time statistics and inventory at the destination (or demand fulfillment if a
customer).
 SIM-299: Asset shifts don't work with INF assets – In the case where there are INF
assets defined, asset shifts do not work / apply.
 Workaround: Set the number of assets to just above the number needed if shifts are
required.
 SIM-313: Shipping Routes: Distance not honored in output – When you input
Distance and Time in the Shipping Routes table, the output honors the Time but does
not honor Distance.
 SIM-327: Work Center Summary Output: Available and Utilized time do not add to
total time – The statistic Idle Time reported by Simulation is not included in the Work
Center Summary Simulation Output table.
 SIM-374: Shipment Mileage Log missing values in SQL models – In a SQL Server
model, the Source and Destination columns are empty. The correct details are in the
raw output in the <ModelName>_NetSimData folder.
 SIM-398: SimScript - SimServer crashes if a script requires a global variable that
does not exist – If you experience this behavior, ensure that all global variables
required by script exist in the Global Variables table.

 BUG-119: Last bucket may not be generated with 5 Day Work Week – In some cases,
when the Work Week option is set to 5 Day, the final bucket in the model may not be
generated. This bucket is generated if the Work Week is changed to 7 Days. Also,
extending the model horizon will allow the final bucket to be generated with a 5 Day
Work Week.
 BUG-165: Incorrect Replenishment Frequency for Weekly Demand Aggregation – In
some models with Weekly demand aggregation, Safety Stock Optimization is
reporting the Replenishment Frequency as 0 when it should be 1.
 BUG-294: Safety Stock Value is not being populated – In cases where Inventory
Policies are grouped, the Safety Stock Value is not being populated even when Safety
Stock is greater than 0.
Workaround: Expand the model prior to running Safety Stock Optimization.
 BUG-404 Safety Stock Cost is not populated in Optimization Output Network
Summary table – When running Safety Stock Optimization, the Safety Stock Cost
field in the Network Summary output table is not populated.
Multi-Objective Optimization
 BUG-63: Filtering on the Multi-Objective Optimization Pareto Point grid does not limit
actions such as Generate Full Solution – While you can create a filter on the Pareto
Point grid for Multi-Objective Optimization, this filter is not used when performing
actions such as Generate Full Solution.

Known Issues
 BUG-286: Multi-Objective Optimization populates Scenario Name with the ID value in

output tables – When Multi-Objective Optimization is run, the Optimization Output
tables have the numeric Scenario ID populated for the Scenario Name.
 BUG-408: For Multi-Objective Optimization, the Network Summary values do not
match those in the the Multi-Objective Details table – With MOO, in some cases, when
full solutions are generated, the Network Summary Total Cost and Multi-Objective
Details Optimization Objective1 do not match.
Vehicle Route Optimization

 BUG-431: Default sub-scenario value is not used with VRO run with single sub-
scenario – In a model that has sub-scenarios defined and the default is specified as a
value other than the first in the scenario item definition, the first value is used when
only the default sub-scenario is run. For example, if the values are 2, 3 and 1 (in that
order), but 1 is specified as the default sub-scenario value, the solver with use the
first value (2). Note that if you run all sub-scenarios, the correct values are used.
 VRP-275: Max Time Per Asset is violated in some cases when using Interleaved
Optimization with Asset Optimization enabled – In a specific model that uses
Interleaved Optimization with the Asset Optimization option selected, the Max Time
Per Asset is set to 3 DAY. When the model is solved, some tours are longer than 3
days.
 VRP-282: Split Shipments results are inconsistent between tables when using Periodic
VRP – In cases where shipments exceed the capacity of available assets, when the
model is run with "Split Shipments when able" selected, the results for Total Quantity
for these shipments are different between the Delivered Shipments and PVRP
Delivered Shipments tables.
 VRP-292: Comp2 values in the PVRP Delivered Shipments table are doubled – When
using multiple compartments in a Periodic VRP model, the Comp2 values for Qty,
Weight and Cubic are doubled in the PVRP Delivered Shipments table.
 VRP-294: Asset Search Distance can be violated in Interleaved Optimization – In
some cases, an asset may originate at a site that exceeds the Asset Search Distance
from another site when using Interleaved Optimization.
 VRP-296: Shipment Prevent Relationship Constraints not respected in Periodic VRP –
In some cases, a Relationship Constraint that prevents a shipment from being routed
with specific other shipments is being violated.
 VRP-299: Comp2 values may be higher than expected with Backhaul Optimization –
In some cases, the Comp2 values for Qty, Weight and Cubic in the Routes table are
higher than expected when running a Backhaul Optimization.
 VRP-300: Overnight break time in the Route Breaks table doesn’t match overnight
break time in Stops table for Backhaul Optimization – In some cases, the Route
Breaks table lists a single break that appears to be two overnight breaks in terms of
duration. This occurred with a Backhaul Optimization model.
 VRP-304: Direct Shipping Cost is missing from Routes and Unrouted Shipments for
Backhaul Optimization – If Shipments are populated with a Direct Shipping Cost, this
value is not reflected in the Routes and Unrouted Shipments tables for Backhaul
Optimization.
 VRP-336: Canceling a solve may be unresponsive – If you try to cancel a VRO solve
during the improvement phase, it may not cancel immediately.
 VRP-342: Routes not showing Pickup Qty, Pickup Weight and Pickup Cubic for initial
pickup – In an Asset Optimization model, where the first stop is Equipment start -

Known Issues
pickup, the Routes table is not displaying the Pickup Qty, Pickup Weight and Pickup
Cubic.
 VRP-372: Pickup Sequence not respected in Baseline model when using Interleaved
Optimization – In some cases, the Pickup Sequence ID assigned to shipments when
using Baseline modeling is not respected when running Interleaved Optimization. The
shipments are placed on the correct routes.
Auto Implement Optimized Model

 BUG-443: Auto Implement Optimized Network is removing required policies – In
some cases, the Auto Implement Optimized Network function is removing policies
that are required for Network Optimization. As a result, the (Optimal) model
generated by Auto Implement may be infeasible.
GeoCoding Guru
 BUG-116: Batch GeoCode is not updating the Postal Code and Country values in all
cases – With Save Missing Values or Replace All Values and Guru Data selected as the
provider, Batch GeoCode is not updating the Postal Code and Country values, even in
records where these are not populated. When performing the same operating on a
single record with Address Search, the values are updated.
Routing
 BUG-227: Road Distance calculation with ESRI local data may populate invalid
Transport Time – In some cases, when using a local ESRI data source as the provider
for the Road Distance tool, the Transport Time is returned with an invalid value, such
as 876660.51 HR. If you use Bing as the provider, the Transport Time values will be
valid.
 GCX-498: Road Distance tool with Bing does not return Transport Time in all cases –
In some cases, when using Bing as the provider, the Road Distance tool may return
Distance values but not a Transport Time.
Workaround: Use the field guru on the Distance field. For example, filter the
Transportation Policies with Transport Time of 0 HR. Click the field guru on the
Distance field for one of the records. Uncheck the "Calculate blank distance values
only" checkbox. Ensure the Filtered radio button is selected, then click Calculate. All
Transport Times are successfully populated.
Tables and Grids

 BUG-47: Characters not cleared on status window running model with a long name
followed by one with a shorter name – If you run a model with a long name, then run
another with a shorter name, characters from the longer model name are still
displayed on the Optimization Status and Simulation Status windows in the Model
field.
 BUG-141: Field Guru form is behind the application window when focus is changed –
If you open a field guru, then switch to an application other than Supply Chain Guru,
when you return to SCG, the field guru form is hidden behind the SCG window.
 BUG-189: Product Classification Tool does not display percentage for Classifications –
All classifications are showing 0% in the Classes pane.
 BUG-332: Filter for numeric value is not always correct with a text field – For
example, the Sourcing Policies table has Avg Unit Cost values of 1, 1.10 and 1.12. If a

Known Issues
filter of > 1.1 is applied, it returns values of 1.10 as being greater than 1.1 because
the field is actually a text field.
 BUG-334: In the Forecasts table, if you select the field guru before entering a number,
you get an error regarding Quantities – In the Forecasts table, if you enter a Name,
then click the field guru, you get an error that the "Field ForecastQuantities cannot be
left blank. Please enter a value for this field."
Workaround: Enter a number in the Quantities field. You can then successfully access
the field guru.
 BUG-418: Edited filter definition to remove characters is not saved – With an invalid
filter definition such as: ="2 when you edit the filter to remove the double quote
character (=2), it is not reflected as an edit, so you cannot save the definition without
the quote. Also, if you remove the double quote character and save the filter with a
new name, it also reverts to the ="2 format.
Workaround: Edit the filter to something different, such as =3, save it, then edit again
to =2 and save again.
 GCX-508: Failure when using Column Update on Access model table with large
number of rows – In an Access model with a large number of rows in a table (200K+),
Column Update may fail with a “File sharing lock count exceeded” error.
Workaround: You can use one of the following workarounds
 Convert the model to SQL Server. The error only occurs in Access models.
 Filter the table and update a smaller number of records at one time.
Charts and Graphs

 BUG-105: The Customer Flows Service Distance Histogram and Customer Flows
Service Hours Histogram graphs (on the Optimization tab) do not clearly distinguish
different scenarios.
 BUG-127: The Time Series Graph for Simulation may display incorrect In-Transit Units
– In some cases, the In-Transit Units are actually displaying the value for the
Backorder Units.
 The Vehicle Route Optimization charts that include both Shipments and Routes as
Graph Fields currently display the number of shipments, rather than the actual
number of routes, when Routes is selected.
Scenarios
 BUG-107: Using a scenario to update Book Value - The Book Value cannot be changed
in a scenario in a conventional way. Outputs show that the Baseline values are
propagated throughout each scenario.
 BUG-208: Using a scenario to set the CO2 value in Transportation Assets – When
running Vehicle Route Optimization on a scenario that sets the CO2 value on the
records in Transportation Assets, there is no CO2 calculated in the output. If you
manually enter CO2 values into the Transportation Asset records and run with VRO,
CO2 Emission is calculated for the Routes and Segments.
 BUG-292: Scenario does not change model horizon dates – Scenario items that are
used to change the model horizon start and end dates do not use the updated dates
when the model is run in memory.
Workaround: Expand the model first to have the updated dates applied, then run the
model.

Known Issues
Import/Export
 BUG-184: Relationship Constraint table does not export and import groups the way
other tables do – In SCG tables, when you use Excel Export, fields that contain group
names do not include the "(Group)" prefix when written out. When reading these
records back in, SCG resolves these for you and associates the value with the group.
With the Relationship Constraint table, the group names are written out as "(Group)
AllDCs". If you are creating data outside Guru and do not include the "(Group)" prefix
in the value, they are not imported correctly (no match to the actual group).
Workaround: Include the “(Group)” prefix with group names when importing into the
Relationship Constraint table.
 SCG-627: Export to Excel csv format causes “Index out of range” error – If you use
the Export to Excel function on a table with more than 1,048,576 rows, the export
fails with a "Row or column index is invalid or out of range." error.
 SCG-1862: Network Summary field name difference on Export – When exporting the
Network Summary optimization output table, the Total Min Inventory field is labeled
as TotalSafetyStock in the Excel table.
Maps
 BUG-36: Class Break values may be inconsistent between Sites and Shaded Areas –
In some cases, the value that defines a class break may vary between breaks on Sites
and Shaded Areas, even if both are using the same table and field to determine the
break.
 BUG-39: Show Sites from Greenfield Facilities includes Class Breaks and Colors
section – For a Sites layer on the map, when “Show Sites from” is set to Greenfield
Facilities, the Class Breaks and Colors section is included in the Layer Properties
areas. This section should not be included.
 BUG-49: Flows lines with scaled density are not displayed correctly with arrowheads
in the middle of the flow line – On a map, if you scale the density of Optimization
Flows by Flow Units, then use an arrowhead that is in the middle of the flow line, the
density shading is only displayed up to the arrowhead. The remainder of the line is
displayed in the solid (most saturated) color selected for the flows.
 BUG-55: Risk Map Layer Navigator is incorrect for the Political Instability Index –
When this index is selected, the colors on the map are correct for the layer type, but
when you move the cursor off that layer and back on, the list box does not reflect that
this is the layer type that is selected. This issue only affects the Political Instability
Index.
 BUG-64: Custom Presentation Max Line Weight not maintained – For a map layer such
as OptimizationFlow, if you enable Use Custom Presentation and set the Size to
(Scaled), then Scale Size By a field value (such as Flow Weight), you can define a Min
and Max line weight. When the project is reopened, the Max line weight is always
reset to the thickest line weight.
 BUG-65: Panned view for Quick Zoom does not maintain panned location – On a map,
when zooming in and then panning to a new center point for the view, a named Quick
Zoom view retains the zoom factor, but is not keeping the panned center point.
 BUG-120: Shaded Area Layer color changes not working as expected – On the
Shaded Area Layer, click on the Start color, change the color and click OK. The color
for the first break is changed, then the color palette is displayed again. You have to
click OK a second time to have the set of break colors adjusted. Select the End color.
Pick a new color and click OK. Only the last break color is updated. The set of break
colors is only adjusted when the Start color is changed.

Known Issues
 BUG-122: Only one Service Area Layer can be saved in a project – This is a current
limitation with the Service Area map layer. You cannot save a project if your model
has more than one Service Area map layer defined. Note that you can create multiple
solutions on a single Service Area map layer. If you save a project with multiple
Service Area Layers, you will get an error. The project file may be corrupted and no
longer valid to open. In that case, you will need to create a new project, add the
model to the new project and redefine the map.
 BUG-132: Customer from Source on Map not correct for specific project – In a specific
project, the colors of the customer sites do not seem to be correct based on the
source.
 BUG-260: Sites on the coast of the Netherlands are not rendered well with Service
Areas – When generating Service Area Layers along the coast of the Netherlands, the
existing ESRI road network has many gaps that result in holes and uneven looking
results.
 GCX-698: Dates displayed on Gantt Chart may be misaligned based on the Number of
Days – In some cases, the date displayed at the top of the Gantt Chart may be
misaligned with the actual date segments shown for the routes.
 VRP-700: Highlighting Gantt chart segments may be incorrect for Hub Optimization
routes – In some cases, when displaying the Gantt chart for a route created using
Hub Optimization, multiple segments are highlighted rather than just the individual
segment.
Visual Modeler
 BUG-92: Filter settings are not maintained when project is closed and reopened – On
the Visual Modeler, you can use Custom Table Filters to limit the display on a layer.
However, when the project is closed and reopened, the filter settings are not
maintained.
Product Classification Tool

 BUG-109: Facility Group Filters in the Product Classification Tool - Facility Group
Filters operate as Exclude filters when applied in the Product Classification Tool.
Product Group Filters operate as Include filters.
Cloud
 BUG-299: Simulation results are different for a Cloud solve when the model uses a
rate table for an input pipe – When solving on the Cloud, if a rate table is used as the
data source for an input pipe, the values are not being populated correctly. As a
result, the solution on the Cloud may vary from that when run locally.
 BUG-312: Embedded carriage return causes import failure on Cloud – In this case,
the Fixed Operating <Cap,Cost> value had an embedded carriage return that split the
value into two lines. The model is successful when run locally, but fails on K2 Cloud
during import.
 BUG-391: Sub-Scenario ID wizard does not work for models solved on the Cloud – If
you run a model with sub-scenarios on K2 Cloud, after import, the wizard on the Sub-
Scenario ID field in the various output tables does not display the sub-scenario value
used. When clicking on the Sub-Scenario ID, you see a message "There are not any
output value details found for this Scenario.”
 WEB-2892: Constraint Checker in Background not working with Network Optimization
– When running Cloud Solver or Web Solver, the “Constraint Checker in Background”

Known Issues
Infeasibility Option is not recognized. Rather than running the constraint checker
when an infeasibility is detected, the model is reported as Infeasible.
Workaround: Run Network Optimization with “Constraint Checker On”, or run
Infeasibility Diagnosis.
 Download from Cloud not supported in Supply Chain Guru 8.3 and 8.3.2 –
SupplyChainGuru.com has been updated to 8.4. Models uploaded to the Cloud will
have a database version of 80420, based on the database version for the 8.4 release.
As a result, you will not be able to download models from SupplyChainGuru.com to
the 8.3 or 8.3.2 versions of Supply Chain Guru, since the model database version is
not supported.
Localization
 BUG-37: The date format on the Optimization Output Network Summary table is
always US format – When the region on the computer is set to a region that uses a
non-US format date, the Model Run Time in the Network Summary table displays the
date in US format.
 BUG-192: Road Distance and Field Guru are inconsistent in writing Distance/Transport
Time with regional settings – When the computer region is set to a non-US format,
the Road Distance tool populates the Distance and Transport Time in Transportation
Policies with US format settings (period as the decimal character). When using the
field guru on the Distance field to calculate distance, the local format is applied (such
as 53,21).
 BUG-204: Non-US region causes the clock to behave incorrectly in Simulation – With
the computer region set so the date is dd/mm/yyyy, run Simulation, ensuring that the
Simulation Clock On is checked. When the model reaches 1/12/2104, the clock stops,
even though the Simulation keeps running.
 BUG-313: Verify Model reports error with non-US settings due to Product Class being
77,5 – If you create a new Product when the computer region is set to non-US, the
default Product Class value is set to 77,5. When you run Verify Model, this Class value
is reported as an invalid value.
 BUG-337: Text fields that accept numbers do not display with regional format when
region is changed – With region set to English (United States), enter 1.5 in the
Transportation Policies Average Cost field. Change the region to German (Germany)
and open the same model. The value is still displayed as 1.5. Note that this value will
work correctly when the model is solved.
 BUG-339: GHG Text fields that accept numbers cause solver to fail when comma with
no integer is used – With region set to non-US, such as German (Germany), enter ,55
as the Carbon Cost value in the Greenhouse Gases table. Network Optimization fails
trying to generate the Params.dat file.
 BUG-340: Field Gurus for numeric entry do not support the comma as a decimal
character – On the Demand table, click the field guru for Quantity. Enter 125,5 in the
Number field. The value is actually displayed as 1255.
 BUG-341: Step Costs field guru not working correctly when localized format is used
for values – With region set to non-US, such as German (Germany), on the field guru
for Fixed Operating <Cap,Cost> in the Sites table, enter 0 for the Capacity value and
150,5 for the Cost, then Paste. The value is displayed as <0,150,5>. Network
Optimization interprets the value 1505. Click on the field guru again. The value is no
longer displayed.
 BUG-342: Time Unit fields with comma for decimal and no integer value can cause
failure – With region set to non-US, such as German (Germany), enter ,75 HR in the

Known Issues
Work Time Per Unit of the Processes table. Network Optimization fails trying to write
the Processes.dat file.
 BUG-343: If a scenario sets a value with a comma for the decimal and no integer, the
update is ignored – With region set to non-US, such as German (Germany), if you
create a scenario item that multiplies the Demand Quantity by ,75 the scenario
change is ignored.
 BUG-344: If a scenario sets a date value with the local format, the update is ignored
– With region set to non-US, such as German (Germany), if you create a scenario
item that sets the Start Date in the Asset Availability table to 15.09.2014 (German
format), the scenario change is ignored.
 BUG-345: Max Sourcing Distance Greenfield Option does not support decimal with
non-US format – In Greenfield Options, enter a Max Sourcing Distance of 525,5. The
comma is not allowed. Enter a value of 525.5 and click Apply. When you reopen the
options, the value is 5255.
 BUG-346: Optimization Tolerances are not handled correctly with non-US region if a
comma is used – For example, with a non-US region, if ,001 is entered for the
Feasibility Tolerance, when you run Network Optimization, it uses the default value
rather than the value entered.
 BUG-347: Time unit fields with a comma as the decimal are interpreted incorrectly for
Vehicle Route Optimization – With a non-US region, entering a value of 1,25 HR for
Fixed Service Time is interpreted as 60 minutes, not 75.
 BUG-348: Fields with a comma as the decimal are written incorrectly for Vehicle
Route Optimization input files – With a non-US region, entering a value of 82,5 for
Speed in the Transportation Assets field causes the input file to be written incorrectly.
 BUG-350: Filters may return incorrect values when using a comma as the decimal
character – For non-US regions, if you have values such as 0,19 and 0,22 in a
numeric field, a filter of > 0,2 does not return the 0,22 value.
Workaround: Change the criteria to > 0.2 and the correct results are returned.
 BUG-351: If a comma is used in a value for a step cost in the Rate table, no cost is
incurred – With a non-US region, on the Rates table enter Per Distance Cost=1,8. Run
Vehicle Route Optimization. These are written to the Rates.csv file as "1,8" but no
cost is incurred.
 BUG-352: Shipments Builder fails with non-US region – If the current region is set to
a non-US region such as German (Germany), the Shipments Builder does not
generate any shipments.
 BUG-357: Vehicle Route Optimization Options with commas are not handled correctly
– For example, with the computer set to a non-US region, if you enter the Route
Selection Optimality Gap on the Interleaved Optimization tab, enter 0,05. It is
changed to 5.
 BUG-358: Demand Classification Threshold values do not accept a comma – If the
current region is set to a non-US region such as German (Germany), when you try to
enter a value with a comma for a Demand Classification Threshold field, the comma is
not accepted.
 BUG-359: Demand Sampling fails with non-US region – If the current region is set to
a non-US region such as German (Germany), Demand Sampling fails.
 BUG-361: For numeric values written out as, if the value uses a comma as the
decimal character, only the integer is used – For fields such as Price, if the value uses
a comma, such as 100,99 only the integer component is used.

Known Issues
 BUG-362: For numeric values written out in quotes, if the value uses a comma as the
decimal character, only the integer is used – Some numeric values are written out to
the input file in quotes, such as Occurrences. If you enter a value such as 2,5 only the
integer component is used.
 SCG-1032: Field level context help does not work when a language other than English
is selected.
 SCG-2081: Copying and pasting records with Chinese characters does not work –
When you copy and paste records with Chinese characters, you may get “????” in
place of the characters. If you are copying individual field values the characters are
correctly copied.
Workaround: If you highlight the text in a specific cell first, then copy and paste, the
characters are copied correctly.
Help
 BUG-252: Ctrl-F1 key combination toggles the UI ribbon, but also launches Help –
This Ctrl-F1 key correctly hides/unhides the ribbon at the top of the UI. However, it
also opens the online help in a browser window.

Chapter 3
Installation
Topics in this section include:

 System Requirements
 Prerequisite Software
 Optional Software
 Installing Supply Chain Guru
 Supply Chain Guru Licensing
 Web Services Information

System Requirements
System Requirements
Supply Chain Guru works on Windows-based systems. For additional information about
system requirements and recommendations, refer to “System Requirement Details” on
page 75.
Minimum System Recommended System Recommended System

Component Requirements Requirements Requirements
(Simple Models) (Detailed Models) (Large Models)
CPU/Processors 2.6 GHz or higher i5 processor i7 processor 3 GHz or higher i7 processor

For additional
information, refer to
CPU Performance.
Operating System Microsoft Windows Windows 7 64-bit Windows 7 64-bit

For additional Service Pack requirements: Windows 8 64-bit Windows 8 64-bit
information, refer to Windows 7 SP1 Windows 8.1 64-bit Windows 8.1 64-bit
Operating Systems.
Windows 8: no Service Pack Windows 10 64-bit Windows 10 64-bit
requirements Windows Server 2012 or Windows Server 2012 or
Windows 8.1: no Service Pack Windows Server 2012 R2 Windows Server 2012 R2
requirements
Windows 10: no Service Pack
requirements
Windows Server 2008 R2 SP1
or Windows Server 2008 SP2
Windows Server 2012 or
Windows Server 2012 R2
Microsoft .NET Microsoft .NET Framework 3.5 Microsoft .NET Framework 3.5 Microsoft .NET Framework 3.5
Framework SP1 and Microsoft .NET SP1 and Microsoft .NET SP1 and Microsoft .NET
Framework 4.5.1 needs to be Framework 4.5.1 needs to be Framework 4.5.1 needs to be
installed as described in installed as described in installed as described in
“Prerequisite Software” on “Prerequisite Software” on “Prerequisite Software” on
page 77. page 77. page 77.
RAM 4 GB RAM minimum 8 GB RAM 16 or 32 GB RAM

For additional
Memory Considerations.
Hard Disk 250 GB HDD @ 7200RPM 500 GB HDD @ 7200 RPM or 2x 500 GB HDD @ 7200 RPM
For additional 100 GB disk space free (1 GB 240 GB SSD or 480 GB PCI-e SSD
information, refer to for installation) 100 GB disk space free (1 GB 100 GB disk space free (1 GB
Disk Speed. for installation) for installation)
Screen Resolution 1024 x 768 1600 x 900 or higher 1600 x 900 or higher, with
For additional extended/secondary displays
Displays on Laptops and
Tablets.

System Requirements
Minimum System Recommended System Recommended System

Component Requirements Requirements Requirements
(Simple Models) (Detailed Models) (Large Models)
Internet Connectivity Internet connectivity is Internet connectivity is Internet connectivity is

required in order to make use required in order to make use required in order to make use
of geocoding and routing of geocoding and routing of geocoding and routing
providers such as Esri and providers such as Esri and providers such as Esri and
Bing, and for retrieving Bing, and for retrieving Bing, and for retrieving
RateWare XL online data. RateWare XL online data. RateWare XL online data.
License Server If you have roaming or floating If you have roaming or floating If you have roaming or floating
Connectivity Supply Chain Guru licenses, Supply Chain Guru licenses, Supply Chain Guru licenses,
you must have connectivity to you must have connectivity to you must have connectivity to
the license server machine. the license server machine. the license server machine.
Model Size
The following table provides general guidelines about what are considered simple,
detailed and large-scale models:
Component Simple Models Detailed Models Large-Scale Models
Model Elements <20 Sites, <50 Products, 40-500 Sites, 50-300 500+ sites, 300+
<10k Demand points, Single Products, 10k-50k products, 50k+
Time Period, Some demand points, multiple Demand points, many
alternatives in sourcing or alternatives to sourcing or variations on
transportation transportation transportation,
sourcing, or many time
periods
Model Size <30MB 30MB-100MB >100MB
Technologies Basic Optimization, Very Intermediate Advanced

Basic Simulation Optimization, Basic Optimization,
Simulation Intermediate or
Advanced Simulation
System Requirement Details

Supply Chain Guru can take advantage of specific aspects of your system’s hardware,
especially during optimization and simulation.
CPU Performance
CPU speed can significantly affect solve time for all model sizes. For multi-core
processors, Supply Chain Guru uses available threads on the machine and solves any
problem with binary or integer variables as a parallel MIP. In this case, the amount of
memory required is increased proportionally as the number of threads being used is
increased. Multiple-core processors are recommended to take advantage of this feature.
Minimum CPU: Intel Core i5 or equivalent, 2.6 GHz or higher.
Recommended CPU: Intel Core i5 or i7 CPU or equivalent, Intel Nehalem-based Xeon
servers, 3 GHz or higher.

System Requirements
Memory Considerations
Memory typically has little or no impact for small models. For larger models, memory is a
consideration. If the optimization requires more memory than the available physical
memory, the operating system will page in virtual memory. This will significantly degrade
performance.
If you have a multi-core processor, Supply Chain Guru will use the available threads on
the machine and solve the problem as a Parallel MIP. In this case, the amount of memory
required is proportionally increased to the number of threads being used.
Memory recommendations:
 4GB for 32-bit systems (32-bit systems are limited to no more than 3GB for user
mode applications, such as Supply Chain Guru and the remaining 1GB will be used to
run the Windows Operating System and other programs).
 8GB or more for 64-bit systems.
Disk Speed
Performance is typically not affected unless you are running models from network drives
or slower media such as USB flash drives. Supply Chain Guru models generally benefit
from the speed increases provided by Solid State Drives (SSDs) over standard hard
drives.
Operating Systems
Due to the availability of larger amounts of memory, LLamasoft recommends that you use
Supply Chain Guru on a 64-bit system. 32-bit systems are limited to 2GB or 3GB of
physical memory for user mode applications. 64-bit systems do not have this limit and
are suitable for solving large models.
Displays on Laptops and Tablets

Some Microsoft Surface users have experienced display issues while working in Supply
Chain Guru. Symptoms include partial display of icons and tabs, and missing text on pop-
up windows. Typically, these issues are easily corrected by changing your display scaling.
Refer to the following Microsoft article to change your Microsoft Surface display settings:
http://www.microsoft.com/surface/en-us/support/apps-and-windows-store/app-display-
issues#Solution3
Users of other tablets or laptops experiencing display issues can adjust their settings in
Control Panel > Display. Usually, selecting the Smaller setting will resolve this problem.
32-Bit versus 64-Bit Processing

32-bit operating systems are limited to 2GB or 3GB of physical memory for user mode
applications, while 64-bit systems do not have this limit. However, there are other factors
that impact how Supply Chain Guru processes models. When you run models, there is a

User Agent and Host Access
series of processes involved. The determination of which version of the process is used
(32-bit or 64-bit) is shown below:
Example Process
Process Type Determined by Description
Name
Input File LLamasoft.Services.NO. Microsoft Office Version  If Microsoft Office 32-bit is installed,
Processing TaskProcessor.exe processing will use 32-bit processor
 If Microsoft Office 64-bit is installed,
processing will use 64-bit processor
Solver LLamasoft.Services.NO. Operating System and  If Operating System is 32-bit,

Processing TaskProcessor.exe CPU processing will use 32-bit processor
 If Operating System is 64-bit,
Output File LLamasoft.Services.NO. Microsoft Office Version  If Microsoft Office 32-bit is installed,
Processing TaskProcessor.exe processing will use 32-bit processor
 If Microsoft Office 64-bit is installed,
Each of these processes will run in either 32-bit mode or 64-bit mode. The 64-bit mode
can take advantage of memory beyond the 3GB limit imposed by 32-bit mode. If you are
running large models in a 32-bit mode, you can encounter “out of memory” errors, either
during file processing or during the actual solve.
The use of the Microsoft Office Version to determine how input and output files are
processed affects both Access and SQL Server models. Therefore, if you want to be
able to process large models, LLamasoft recommends that you install a
Microsoft Office 64-bit version.
User Agent and Host Access

User Agents are called and remote hosts are accessed for a variety of functions relating
to Supply Chain Guru:
 Supply Chain Guru installation
 Supply Chain Guru web update
 RateWare XL Server data lookups
 ArcGIS web-based maps
 Bing geocoding and distance calculations
In order for these functions to operate correctly, you must enable access to the specified
user agents and remote hosts. For information about enabling access to user agents and
remote hosts, refer to “Web Services Information” on page 98.
Prerequisite Software
Microsoft .NET Framework

Microsoft .NET Framework 3.5 SP1 is required for Supply Chain Guru maps to function
properly. The installer will detect if this component is not available and prompt you to
install it.

Optional Software
Note: This version of the .NET Framework is part of the Windows 7 operating system, so
you will not need to install it in this case.
You can also download and install Microsoft .NET Framework 3.5 from Microsoft’s
website:
http://www.microsoft.com/en-us/download/details.aspx?id=21
Microsoft .NET Framework 4.5.1 is required for Supply Chain Guru to function properly.
For Microsoft .NET Framework 4.5.1, be sure you install the full framework, not the client
profile.
Note: Windows 8, Windows 8.1, and Windows 10 come with Microsoft .NET Framework
4.5 installed.
To ensure that the Microsoft .NET Framework 4.5.1 is currently installed on your
computer:
 Use the Windows Start button to open Control Panel.
 Select Programs > Programs and Features (on Windows 7).
 If the application is already installed, it will be listed in the program list as Microsoft
.NET Framework 4.5.1.
If currently not installed, the Supply Chain Guru install center will prompt you to install
.NET Framework 4.5.1 when you try to run Supply Chain Guru. You can also download
and install Microsoft .NET Framework 4.5.1 from Microsoft’s website:
http://dotnetsocial.cloudapp.net/GetDotnet?tfm=.NETFramework,Version=v4.5.1
ArcGIS Engine Runtime

Supply Chain Guru requires the ArcGIS Engine Runtime Engine version 10.0.4400 from
ESRI. This application is installed as part of the Supply Chain Guru installation process
when you use the Supply Chain Guru install center.
If you have ArcMap software from ESRI installed on the machine where you will install
Supply Chain Guru, and the ArcMap version is newer than 10.0.5.4400, please email
licensing@llamasoft.com to obtain a different Supply Chain Guru installer that is
compatible with your ArcMap version.
Python
Supply Chain Guru requires Python version 2.6.2 when using Simulation scripts that are
defined in Python. The Supply Chain Guru Install Center will install the required version of
Python if it is not already installed on the machine.
Optional Software
Microsoft Office
Supply Chain Guru supports use of files in Microsoft Access and Microsoft Excel formats
for a variety of functions. For example, Supply Chain Guru tables can be imported from or
exported to Microsoft Excel and Supply Chain Guru input pipe data sources can be Access
or Excel files.

Optional Software
If you wish to use these features of Supply Chain Guru, LLamasoft recommends that you
have Microsoft Office installed on the same machine as Supply Chain Guru.
In addition, the processing of input and output files when solving Supply Chain Guru
models is impacted by whether the installed version of Microsoft Office is 32-bit or 64-bit.
If you have Microsoft Office 64-bit installed, the Supply Chain Guru file processors will run
in 64-bit mode and will be able to take advantage of the larger memory footprint on your
computer. If you have Microsoft Office 32-bit installed and attempt to run large models,
you may encounter “out of memory” errors, since the memory will be limited to 3GB.
Therefore, if you want to be able to process large models, LLamasoft
recommends that you install a Microsoft Office 64-bit version.
Microsoft SQL Server

You can create Supply Chain Guru models in Microsoft SQL Server format, as well as in
Access format. Supply Chain Guru requires that you use a local instance of the SQL
Server database. Remote databases are not supported.
As of Supply Chain Guru version 8.4, SQL Server 2014 is the required version of the
optional SQL Server database.
If not already installed, SQL Server 2014 Express will be installed as part of the Supply
Chain Guru installation process. The SQL Server 2014 database instance will be used as
the default for Supply Chain Guru. If you have an older version of SQL Server installed on
your system:
 The existing version will be maintained and SQL Server 2014 Express will be installed
as a stand-alone installation using the Supply Chain Guru Install Center.
 All SQL Server models created, opened, copied, expanded or converted using Supply
Chain Guru are in the SQL Server database version of the Local Server Instance
selected in Supply Chain Guru. For Supply Chain Guru version 8.4, this must be SQL
Server 2014.
 The Supply Chain Guru Install Center will install SQL Server 2014 Express and create
a database instance called LLAMASOFT2014. The existing SQL Server version will be
maintained and SQL Server 2014 Express will be installed as a stand-alone
installation.

Optional Software
 For Supply Chain Guru to be able to use SQL Server models, you must select a SQL
Server 2014 instance, such as LLAMASOFT2014. To do this, set the Local Server
Instance on the SQL Server tab of Application Settings:
 After you set the instance to SQL Server 2014, you can open models that were
created in an earlier format, such as SQL Server 2008. The model is updated
automatically to SQL 2014 format.
 Once models have been upgraded to a new version of SQL Server, you cannot open
them with an older instance. For example, if you open a model with a SQL Server
2014 instance selected, you will not be able to open that model on a system where an
older SQL Server instance is selected.

Optional Software
 If you do not have a SQL Server 2014 instance selected, the Add New Model and Add
Existing Model will not offer SQL Server (.mdf) as a database format:
In addition, the Convert Model function will not be available to convert Access models
to SQL Server.
 If you are using the Manage function to upload models to the Cloud and download
models from the Cloud to Supply Chain Guru, you will receive a warning if your
database instance is not SQL 2014:
Refer to the table below for a summary of supported features with different SQL Server
instances selected in Supply Chain Guru 8.4:
Feature SQL Server 2008R2 SQL Server 2014
Add New SQL Model Not Available Supported
Add Existing SQL Model Not Available Supported

If the model added is currently in SQL
2008 format, it is automatically
converted to SQL 2014 format and can
no longer be used with SQL 2008.
Convert Access to SQL Server Not Available Supported
Upload Model to Cloud Supported Supported
Download Model from Cloud Not Available Supported
If you already had SQL Server 2014 installed on your computer before installing Supply
Chain Guru 8.4, you may need to manually select the Local Server Instance the first time
you run Supply Chain Guru.

Optional Software
Basic Supply Chain Database

 The Basic Supply Chain Database files that are installed with Supply Chain Guru are in
SQL Server 2014 format. These are installed to the Supply Chain Guru installation
folder, typically C:\Program Files (x86)\Supply Chain Guru for 64-bit operating
systems.
 Whenever you start Supply Chain Guru, the Basic Supply Chain Database files are
copied to a special user folder: C:\Users\<username>\AppData\Local\LLamasoft\
SupplyChainGuru. These files will be in the format for the SQL Server instance you
select in Supply Chain Guru. This allows you to switch instances in Supply Chain Guru
and still be able to work with your models, regardless of the database format.
Server Instances
During installation of SQL Server using the install center, a local server instance called
LLAMASOFT2014 is created. If you have been using another version of SQL Server with
Supply Chain Guru, the Local Server Instance on the SQL Server tab of Application
Settings in Supply Chain Guru will remain set to your existing instance.
You can use the Local Server Instance setting to select the SQL Server instance you want
to use with Supply Chain Guru. Whichever instance is selected when you create, open,
copy, convert, or expand SQL Server models determines the database version for the
model. Models created in an older database version will be automatically upgraded if the
currently selected instance is newer. However, once a model has been upgraded to a new
version of SQL Server, you will not be able to open it with an older instance.
You can determine the version of SQL Server for each Local Server Instance using the
Info… button on the SQL Server tab of Application Settings. For example, when the SQL
Server 2014 instance is selected, the Info... button returns the following information:
The following table lists the version numbers for several common SQL Server Express
versions and service packs:
SQL Server Version/Service Pack Version Number
SQL Server 2008 R2 SP1 10.50.2500.0
SQL Server 2008 R2 SP2 10.50.4000.0
SQL Server 2012 RTM 11.00.2100.60
SQL Server 2014 12.0.2000.80
Visit this Microsoft Support page for additional details:

http://support.microsoft.com/kb/321185

Optional Software
SQL Server 2014 and Operating System Compatibility

For details about compatible service packs per Windows operating system when using
SQL Server 2014, visit this Microsoft Support page:
http://msdn.microsoft.com/en-us/library/ms143506.aspx
SQL Server Services

Each instance of SQL Server is associated with a Service that can be started and stopped
using Control Panel > Administrative Tools > Instances. You can determine whether each
service starts automatically whenever the computer is started or if it must be started
manually. In the following image, there are 3 SQL Server instances. LLAMASOFT2014 is
set to start automatically, the other two instances require a manual start:
You can also start a SQL Server instance service from within Supply Chain Guru. On the
SQL Server tab in Application Preferences, select the Local Server Instance you wish to

Optional Software
start. If not already started, the Start SQL Service button will be enabled. Click this
button to start the currently selected instance:
Additional Notes regarding SQL Server

Please note the following with regard to SQL Server installation:
 If you are working on a Windows 7 or higher system and Microsoft SQL Server 2014 is
not currently installed, SQL Server 2014 Express will be installed as part of the Supply
Chain Guru installation process. There are two versions of the Supply Chain Guru
Install Center that provide either the 32-bit or 64-bit version of SQL Server 2014. If
you have Microsoft Office 64-bit installed, you should use the Install Center with SQL
Server 2014 64-bit. If you have Microsoft Office 32-bit installed or Microsoft Office is
not installed on your computer, you should use the Install Center with SQL Server
2014 64-bit.
 When using SQL Server on a Windows 8, Windows 8.1 or Windows 10 system, you
must enable .NET 3.5. .NET 3.5 is provided with these versions of Windows, but is not
enabled by default. If you do not enable it, you will receive compatibility warning
errors when you start.
 The SQL Server Management Studio is not included in the Supply Chain Guru Install
Center due to limitations on installer file size. LLamasoft recommends that you
download and install the SQL Server Management Studio, as it enables you to access

Optional Software
the data tables within your SQL Server model databases, and perform other database
administration tasks.
You can find Installation information for SQL Server 2014 in the SQL Server 2014 Express
Install and Configuration Guide located on support.llamasoft.com in the Downloads
section.
If you want standard (non-administrator) users to use SQL Server with Supply Chain
Guru, and you have upgraded from a previous version of Supply Chain Guru, you may
need to enable the “Allow service to interact with desktop” setting for SQL Server for the
specific instance. In Services available through the Control Panel, right-click on the SQL
Server service and select Properties. On the Log On tab, enable “Allow service to interact
with desktop”.
SQL Server Management Studio

LLamasoft recommends that you install the SQL Server 2014 Management Studio, as it
enables you to access the data tables within your SQL Server model databases, and
perform other database administration tasks. The downloads for SQL Server 2014
Management Studio are located here:
https://www.microsoft.com/en-us/download/details.aspx?id=42299
Select the version of the Management Studio you want to install:
 MgmtStudio 32BIT\SQLManagementStudio_x86_ENU.exe – Use this download if you
have installed the 32-bit version of SQL Server.
 MgmtStudio 64BIT\SQLManagementStudio_x64_ENU.exe – Use this download if you
have installed the 64-bit version of SQL Server.
Google Earth
You can use Google Earth to view Supply Chain Guru maps. If Google Earth is installed,
you can open Supply Chain Guru maps in Google Earth. If Google Earth is not installed,
you have the option to export your Supply Chain Guru maps to .kmz format files which
can then be opened in Google Earth.
To download Google Earth, use the following url:
http://www.google.com/earth/download/ge/agree.html
For information about using Google Earth with Supply Chain Guru maps, see the Supply
Chain Guru online help.
Bing Geocoding Service

Bing is a transactional geocoding service provided by Microsoft and requires an account in
order to use it. Bing results in successful geocoding in many cases of different spellings
and structures (for example, state specified vs. not specified). In many cases, it can
accurately interpret either a local language, English, or alternate spelling of names for
streets and cities. In some areas, such as Eastern Europe, providing postal code
information may result in Bing not successfully geocoding sites.
As a licensed Supply Chain Guru user, LLamasoft provides a complimentary Bing Maps
license key as part of your Annual Maintenance and Support. The instructions below
outline how to activate your license. If you have not received your license, please contact
licensing@llamasoft.com.
To activate Bing Maps:

Optional Software
1. Run Supply Chain Guru.

2. Select File > Application Settings.
3. Click on the Authentication Keys tab.
4. Copy and paste the Bing Account Key provided by LLamasoft.
5. Click Apply.
You must also update the ArcGIS installation to recognize the Bing key.
To set the Bing Key for ArcGIS:

1. On machines with a 64-bit operating system, select Set Bing Key from the Supply
Chain Guru start menu. You see the Set Bing Key form.
On machines with a 32-bit operating system, using File Explorer, navigate to the C:\
Program Files\ArcGIS\Engine10.0\bin folder, then double-click on SetBingKey.exe.
You see the Set Bing Key form.
2. Copy and paste the Bing Account Key provided by LLamasoft
3. Click OK.
Note: The SetBingKey.exe program can also be accessed from the ArcGIS program
folder location. This is C:\Program Files (x86)\ArcGIS\Engine10.0\bin on 64-bit
systems or C:\Program Files\ArcGIS\Engine10.0\bin on 32-bit systems.
Bing can then be used like any of the other geocoding sources.
If you are not a licensed user that has an Annual Maintenance and Support agreement
with LLamasoft, you may create a temporary license key using the process outlined
below.
To create a temporary Bing Maps license key:

Go to: http://www.bingmapsportal.com and complete the process to create a free
account. Once you create an account, you will have an option to create a "key." When
prompted, enter the following values:
 Application: Supply Chain Guru
 Key type: Trial
 Application Type: Private Windows App (8.x and earlier)
Note: You do not need to provide an Application URL.
At the end of this process, you will be given a long, alphanumeric key that you can copy
and paste into Supply Chain Guru in Application Preferences on the Authentication Keys
tab. Bing can then be used just like any of the other geocoding sources.
PC*Miler
Supply Chain Guru supports PC*Miler for geocoding, routing and distance calculation. You
need to have PC*Miler with PC*Miler|Connect. PC*Miler|Connect must be on the same
machine that Supply Chain Guru is installed on. For information about PC*Miler |
Connect, see:
http://www.pcmiler.com/products/pcmiler-connect.aspx
LLamasoft recommends that you set up PC*Miler using the instructions provided by ALK.

Optional Software
After installing PC*Miler, Supply Chain Guru will show PC*Miler as a provider as soon as it
sees the instance of PC*Miler|Connect installed with PC*Miler. You can use the PC*Miler
License Tool to confirm that PC*Miler|Connect is installed.
Tableau
Supply Chain Guru supports use of Tableau software for analyzing your Supply Chain
Guru model data. Tableau supports a large number of data visualizations. Default Tableau
view templates are provided with the Supply Chain Guru installation.
Supply Chain Guru Version 8.4 is compatible with Tableau Version 9.3.
For general Tableau information, see:
http://www.tableausoftware.com/products/desktop
For the list of available Tableau downloads, refer to:
http://www.tableau.com/esdalt
RateWare XL Server
Supply Chain Guru supports RateWare XL from SMC3 for obtaining tariff rates. These
rates are based on origin, destination and weight of shipments and the freight class of
products. You must set up an account with SMC3 and indicate that you are calling
RateWare XL from within Supply Chain Guru from LLamasoft.
Note: You must have a valid internet connection to connect to RateWare XL.
Once you set up an account for RateWare XL, you enter the settings for your account in
Supply Chain Guru’s Application Settings, on the RateWare XL tab. You will enter:
 License Key
 User Name
 Password
 Tariff Table
 Tariff Effective Date
Note: You can click Validate to confirm the connection to RateWare XL. If you enable
the Show Password setting, the password characters will not be masked with
asterisks (*).
Once you have set up your RateWare XL connection, rates from the selected Tariff Table
will be automatically retrieved when you are setting transportation costs. On the
Transportation Policies table, the Field Guru for the Cost and Average Unit Cost fields
includes a Rate Services section with a RateWare XL option. If this option is enabled,
rates are retrieved from the online RateWare XL server tables.
When working with RateWare XL:
 needs the following information to return a rate:
 Origin Postal Code (Postal Code from Sites table)
 Destination Postal Code (Postal Code from Sites table)
 Product Freight Class (Class value from Products table)
 Shipment Size (Shipment Size from Transportation Policies table)
 The Transportation Policy can be based on groups.

Installing Supply Chain Guru
 The Cost Basis will automatically be set to LTL Rating when using a rate lookup
through RateWare XL. This basis behaves the same way as Fixed rating.
 For optimization, the Shipment Size field is used to calculate the number of trips, so
you must provide this value when using RateWare XL rates in the Average Unit Cost
field.

If you are installing Supply Chain Guru for the first time, or updating from an earlier
version of Supply Chain Guru, you must use the install center. For upgrades from earlier
versions of Supply Chain Guru, LLamasoft recommends that you uninstall the previous
version of Supply Chain Guru and restart your machine. Uninstalling the previous version
ensures that older shortcuts and other items related to the previous version are correctly
removed.
To uninstall Supply Chain Guru

1. Select Start > Control Panel > Programs & Features or Uninstall a program.
2. Select Supply Chain Guru.
3. Click Uninstall.
4. Follow the uninstall process for Supply Chain Guru.
In cases where SQL Server Express is installed as part of the Supply Chain Guru
installation process, the restart also ensures that any Windows updates or other
configuration changes are completed prior to the SQL Server Express installation. If these
changes are not complete, SQL Server Express may fail to run successfully.
Installation Requirements
The following are requirements to successfully install Supply Chain Guru:
 You must have Administrator privileges to run the Supply Chain Guru installer.
 Supply Chain Guru is not supported in an environment with encrypted folders. The
target folders for Supply Chain Guru installation cannot be encrypted or installation
will fail.
 If your operating system is Windows 7 or newer, LLamasoft recommends that you set
the User Account Control Settings to “Never notify”.
Installation Supply Chain Guru and required Third Party

Software:
To download and use the installation program:

1. If you have ArcGIS Engine Runtime version 9 or earlier installed, uninstall this
program through Control Panel > Programs and Features > Uninstall/Change.
If you have ArcMap software from ESRI installed on the machine where you will install
Supply Chain Guru, and the ArcMap version is newer than 10.0.5.4400, please email
licensing@llamasoft.com to obtain a different Supply Chain Guru installer that is
compatible with your ArcMap version.
2. If your computer system does not have the required Service Pack installed, use
Windows Update to install the required Service Pack.

3. Depending on your requirements, you can use one of two mechanisms to install
Supply Chain Guru – Supply Chain Guru Install Center or Supply Chain Guru msi
Installer. In either case, you will need to download an installation file. The installers
are found on support.llamasoft.com under Downloads.
Supply Chain Guru Install Center – The Supply Chain Guru Install Center includes
the installers for ArGIS Engine Runtime, SQL Server Express 2014 and Supply Chain
Guru. Use the Install Center in the following cases:
 You do not have Supply Chain Guru installed on the machine.
 You have a Windows 7 or higher system and want to install SQL Server 2014
Express as part of the Supply Chain Guru installation.
 You have a version of ArcGIS Engine Runtime other than 10.0.4400 installed and
you want to upgrade to the required version for Supply Chain Guru 8.4.
 You are upgrading from an earlier version of Supply Chain Guru.
Two install centers are available, depending on which version of SQL Server 2014
Express you want to install.
 SCG Install Center 8.4.0.0 32 bit.exe – Use this install center to install Supply
Chain Guru and SQL Server 2014 Express 32-bit.
 SCG Install Center 8.4.0.0 64 bit.exe – Use this install center to install Supply
Chain Guru and SQL Server 2014 Express 64-bit.
Note: The 32-bit version of SQL Server 2014 will work on computers with 64-bit
operating systems.
Supply Chain Guru Installer – The SCG Install Redist Only 8.4.0.0.exe can be
used to install only the Supply Chain Guru application and required Microsoft Visual
C++ components. Use this installer in the following cases:
 You are upgrading from an existing version of Supply Chain Guru and already have
the required version of ArcGIS Engine Runtime installed, and you do not want to
install SQL Server Express 2014.
 You have ArcGIS Engine Runtime and all required Microsoft .NET components
installed, and you optionally already have SQL Server Express 2014 installed.
4. After the download completes, right-click the file you just copied and select the “Run
as administrator” option to start the installation process. The install center first
extracts all files, which may take a few minutes.
5. Click OK to continue with the extraction. You see the Welcome screen.
6. Click Next to continue. When the install center indicates the components that will be
installed, ArcGIS Engine Runtime 10.0.4400 (if not installed already), SQL Server
2014 Express (if not already installed), Python 2.6.2 (if not installed already) and
Supply Chain Guru 8.4, click the Install button to start installing the applications.
This may take up to 30 minutes for installation of all applications.
Note: If you are installing on Windows 8, Windows 8.1 or Windows 10, you may be
prompted to install the Microsoft .NET Framework 3.5. Follow the instructions to
install this component, then restart the Supply Chain Guru installer.
7. If the installation requires Python to be installed, you see the Python 2.6.2 Setup
screen. You can accept the default of “Install for all users”, then click Next.
The default destination folder is C:\Python26\SCG_64 for the 64-bit version of Python
or C:\Python26\SCG for the 32-bit version. You can accept the default folder, then
click Next.

If required, you can customize the Python installation, or accept the default setup and
click Next.
Click Finish when the Python installation is complete.
8. During the installation, use the Next button to click through Supply Chain Guru
installation wizard screens. By default, Supply Chain Guru 8.4 is installed in the
Supply Chain Guru folder. To install Supply Chain Guru 8.4 in a different folder, change
the installation path.
9. If the Install Center installs SQL Server 2014 to your computer, at the conclusion of
the installation, you will be prompted to reboot your computer. LLamasoft
recommends that you reboot the computer to successfully complete the SQL Server
installation.
10. If you already had Supply Chain Guru installed on your computer, your existing
license should work with the updated version of Supply Chain Guru. If this is a new
installation of Supply Chain Guru, apply the license file you received from LLamasoft.
Note: If a problem occurs when applying the license, you will see a message indicating
there has been a problem. Please contact our License Manager at
licensing@llamasoft.com if you have any problems with your license.
Refer to “Supply Chain Guru Licensing” on page 92 for additional information

about the Supply Chain Guru licensing system.
11. To allow Bing basemaps to be displayed in Supply Chain Guru, you must run the Set
Bing Key utility for ArcGIS:
 On machines with a 64-bit operating system, select Set Bing Key from the
Supply Chain Guru start menu. You see the Set Bing Key form.
On machines with a 32-bit operating system, using File Explorer, navigate to the
C:\Program Files\ArcGIS\Engine10.0\bin folder, then double-click on
SetBingKey.exe. You see the Set Bing Key form.
 Copy and paste the Bing Account Key provided by LLamasoft
 Click OK.
After Installation
When you first start Supply Chain Guru, if the application detects that the .NET
Framework 4.5.1 is not currently installed, you will be prompted to install it. Once this
installation is complete, Supply Chain Guru will run successfully.
If you already had SQL Server 2014 installed on your computer before installing Supply
Chain Guru 8.4, you may need to manually select the Local Server Instance the first time
you run Supply Chain Guru.
It is recommended that you check the About Guru screen in Supply Chain Guru 8.4. The
screen should appear as shown in the following image, and you should not see any
question marks on the screen.

Supply Chain Guru Version 8.4 About Screen:
Supply Chain Guru Demo Models

The Supply Chain Guru installer provides a set of demo files for the various design
engines. You can access these from the Start Page in the section at the bottom of the
page titled “Demo Models”. These demo files are installed to the C:\Users\<username>\
Documents\LLamasoft\Demo Models folder.
If you do not have the current version of the demo files, you can obtain them from the
LLamasoft Support site. On support.llamasoft.com, use the “What’s New?” link under
SupplyChainGuru to access the download information for the latest version of Supply
Chain Guru.
Uninstalling Supply Chain Guru

When uninstalling Supply Chain Guru and the related software, LLamasoft recommends
the following procedure.
Note: Uninstalling SQL Server (2008 R2 or 2014) and ArcGIS Engine Runtime 10 is not
required when uninstalling Supply Chain Guru. However, if you are uninstalling
these products, the order in which they are uninstalled is important.
Uninstall Supply Chain Guru

2. Select Supply Chain Guru.
3. Click Uninstall.
4. Follow the uninstall process for Supply Chain Guru.
Uninstall SQL Server

Supply Chain Guru Licensing
2. Select Microsoft SQL Server 2008 R2 or Microsoft SQL Server 2014, depending
on the version currently installed.
3. Click Uninstall/Change.
4. Follow the uninstall process for SQL Server, selecting the Remove option.
Uninstall ArcGIS Engine Runtime 10

2. Select ArcGIS Engine Runtime 10.
3. Click Uninstall/Change.
4. Follow the uninstall process for ArcGIS Engine Runtime 10, selecting the Remove
option.
Delete Program Folders

1. Navigate to C:\Program Files (x86)\
2. Delete the following folders, if present:
 ArcGIS
 ESRI
 Supply Chain Guru
Empty Recycling Bin

1. Right-click on Recycle Bin.
2. Select Empty Recycle Bin.
Reboot Computer

Supply Chain Guru uses a flexible licensing system. This license manager provides
licensing options such as floating and roaming licenses. The specific licenses you have
available to you depend upon your agreement with LLamasoft, Inc.
Standard Licenses
If you have a standalone license on your computer, you will use a standard license. This
license is installed on your computer and will determine which of the available
components of Supply Chain Guru are active on your computer:
 Network Optimization
 Inventory Optimization
 Simulation
 Vehicle Route Optimization
There are several ways in which you register Supply Chain Guru and activate your
license:
 Internet Activation using Authorization Code
 Update Licenses from File

 Request License via Email
Internet Activation using Authorization Code

When you use this method to activate your license, you must first obtain an authorization
code from LLamasoft.
To activate your license with an authorization code:

1. Obtain an authorization code from LLamasoft.
3. Select File > Admin > Licensing.
4. Select Internet Activation using Authorization Code.
5. Enter the code you received in the Authentication Code field and click Submit.
Update Licenses from File

You will typically use this type of license activation to enable additional functionality in
Supply Chain Guru. When you use this method to activate your license, you must first
obtain a license file from LLamasoft.
To activate your license with an authorization code:

1. Obtain a license file from LLamasoft and copy this file to your computer. The file can
be located in any folder.
4. Select Update Licenses from File.
5. Click the browse button and navigate to the folder where you copied the license file
from LLamasoft.
6. Select the file and click Open, then click Submit.
Request License via Email
To request a license via email:

3. Select Request License via Email.
4. Provide the requested information:
 First Name
 Last Name
 Institution
 Email
 Phone
5. Click Next. You see a window with system information that you must supply to
LLamasoft.
6. Click Send. This copies the information into a new email message using your email
provider. The message will be sent to licensing@llamasoft.com.

You will receive a license file or authentication code from LLamasoft.
Floating and Roaming Licenses

LLamasoft’s licensing software has been updated for version 8.4. If you have a remote
license server, please contact the Licensing Team at licensing@llamasoft.com for the
latest license server release package.
In addition to named user licenses, LLamasoft also offers a licensing option for floating
and roaming licenses. For both floating and roaming licenses, a pool of licenses is kept on
a computer called the license server. Client computers running Supply Chain Guru can
check out licenses from this pool until all licenses are checked out. If all licenses are
checked out, a request for a license by an additional Supply Chain Guru computer will be
denied and Supply Chain Guru will not open on this client computer.
 Floating License - The user can check out a license for an indefinite period. The client
computer must be on the network and have access to the license server computer at
all times in order to be able to check out licenses.
 Roaming License - The user can check out a license for a specified number of days.
The client computer must be on the network and have access to the license server
computer to initially check out the license. Once roaming has started, the user can
disconnect from the network and the license will continue to work until the number of
roaming days has expired. At that point, Supply Chain Guru will stop working and the
license is automatically returned to the license pool. The user must connect to the
network in order to check out a license again.
To initiate roaming:
a. Start Supply Chain Guru.
b. Select About Guru > Start Roaming. If a roaming license is available, it is deployed
to your computer for the default roaming period established for your organization.
When you start next start Supply Chain Guru, you see a message indicating how
many days remain before your roaming license is set to expire.
To end roaming:
a. Start Supply Chain Guru.
b. Select About Guru > Stop Roaming. The roaming license is returned for use by
another Supply Chain Guru user.
Please contact your LLamasoft representative or send an e-mail to sales@llamasoft.com
if you are interested in learning more about this licensing option.
Default Licenses
Supply Chain Guru licensing supports a default license. The default license that comes
with Supply Chain Guru is a 45-day license, and supports a limited number of sites (100)
and products (10). Once a computer has had a default license, installing Supply Chain
Guru on it again will not activate another 45 day license. Instead, the user will have the
option to register to request a new license.
Limited License
LLamasoft can also provide a limited license. It has the same limits on sites and products
as the default license, but can be set with a different expiration period.

Connecting to Remote Design Engines
Connecting to Remote Design Engines

If you want to send models to the remote design engines, you should verify your
connection.
To use Supply Chain Guru 8.2.x with remote design engines, the URL is:
http://supplychainguru.com
1. With Supply Chain Guru open, click on the File tab, then click Application Settings.
2. Select the Cloud tab.

3. Enter your Supply Chain Guru URL.
 Current Release: http://supplychainguru.com – This will be the default value if
this is a brand new installation.
 Supply Chain Guru 8.1.x: http://k2-scg81.supplychainguru.com – This will be the
default value if a previous version of Supply Chain Guru was on the machine

Connecting to K2 Enterprise
Note: The current release will be the generally available customer release of Supply
Chain Guru. When a new release is made available, LLamasoft will keep the
Current Release url set to the previous release for a short time to enable users to
update as needed.
4. Enter your supplychainguru.com User name Password to connect.

5. Click Connect to test your connection. Verify that your Connection Status is Valid
and your Connection Quality is Very Good.
6. Click Apply, then click OK.
If you are working with K2 Enterprise, you should verify your connection to the K2
Enterprise server.

1. With Supply Chain Guru open, click on the File tab, then click Application Settings.
2. Select the K2 Enterprise tab.

3. Enter your Supply Chain Guru URL.
4. Set up your Supply Chain Guru credentials:
 If you are using Windows Authentication, select Use Windows Authentication.
 If you are not using Windows Authentication, leave the Use Windows
Authentication option unchecked.
Enter your User Name and Password.

Web Services Information
5. Click Connect to test your connection. Verify that your Connection Status is Valid
and your Connection Quality is Very Good.
6. Click Apply, then click OK.

Your IT department can allow the User Agent Strings, Hosts, and URLs of the http
headers that Supply Chain Guru uses when calling web services as exceptions in your
proxy server script or proxy server settings. Note that you do not need to use all 3
methods; your company can choose the method it is most comfortable with.
Note: You should not set proxy server settings for Bing or Google web services. This can
prevent these services from working.
If these features currently work with no problem, no further action is required by

the Supply Chain Guru user or by the IT department.

This website provides some examples on how proxy scripts can be set up to allow for
these type of exceptions:
http://technet.microsoft.com/en-us/library/dd361918.aspx.

Chapter 3 Installation
User Agents
SCG Actions User-Agent Information
Geocoding or Distance Mozilla/4.0 (compatible; MSIE 6.0; MS Web

Calculations with Esri Services Client Protocol 2.0.50727.XXXX)
providers
Geocoding or Distance no user agent identified (WCF service vs. web

Calculations with Bing provider ASP.net web service)
Web-based Maps ArcGIS URI Download Build 10.0.0.2414
Web-based Maps ArcGIS Single Signon
Web-based Maps ArcGIS Bing URI
Web-based Maps ArcGIS Client Using WinInet
Rateware XL lookups Mozilla/4.0 (compatible; MSIE 6.0; MS Web

Services Client Protocol 2.0.50727.XXXX)
SCG installation Microsoft-CryptoAPI/5.131.2600.5512
SCG Web-Update Wise
SCG Web-Update Windows Installer
Hosts
SCG Actions Host
Geocoding or Distance tasks.arcgisonline.com

Calculations with Esri
providers
Web-based Maps www.arcgis.com
Web-based Maps serverapi.arcgisonline.com
Web-based Maps t0.tiles.virtualearth.net
Rateware XL lookups demo.smc3.com
SCG installation crl.verisign.com

directly at beginning when starting on ESRI GIS
Software
SCG installation csc3-2009-2-crl.verisign.com

directly at beginning when starting on ESRI GIS
Software
SCG Web-Update www.llamasoft.com

URLs
SCG Actions URL
K2 Cloud k2-scg80.supplychainguru.com
connection IP 64.9.219.200
K2 Cloud k2-scg80.supplychainguru.llamasoft.com
connection IP 64.9.219.193
Esri NA geocoding http://tasks.arcgisonline.com/ArcGIS/services/Locators/

TA_Address_NA_10/GeocodeServer
Esri US Geocoding http://tasks.arcgisonline.com/ArcGIS/services/Locators/

TA_Streets_US_10/GeocodeServer
Esri EU Geocoding http://tasks.arcgisonline.com/ArcGIS/services/Locators/

TA_Address_EU/GeocodeServer
Esri World http://tasks.arcgisonline.com/ArcGIS/services/Locators/

Geocoding ESRI_Places_World/GeocodeServer
Esri NA Routing http://tasks.arcgisonline.com/ArcGIS/services/

NetworkAnalysis/ESRI_Route_NA/mapserver/NAServer
Esri EU Routing http://tasks.arcgisonline.com/ArcGIS/services/

NetworkAnalysis/ESRI_Route_EU/mapserver/NAServer
Web Maps http://www.arcgis.com/arcgisuris.xml
Web Maps http://serverapi.arcgisonline.com/veadaptor/production//

services/identity/clientip

services/imagery/getmetadata?token=AleG3-
ooLyYAIGSuWGVAC4P_e4U_zPe-
6ztIKYqpoKMt42z6FgSieHvJHhNkQ1f1&style=Road

6ztIKYqpoKMt42z6FgSieHvJHhNkQ1f1&style=Aerial

6ztIKYqpoKMt42z6FgSieHvJHhNkQ1f1&style=AerialWithLabels
Web Maps http://services.arcgisonline.com/ArcGIS/services
Web Maps http://services.arcgisonline.com/arcgis/services
Web Maps http://services.arcgisonline.com/ArcGIS/services/

World_Terrain_Base/MapServer

World_Shaded_Relief/MapServer

World_Shaded_Relief/
MapServer?mapname=Layers&layer=_alllayers&level=1&row=
0&column=1&format=JPEG

SCG Actions URL



Web Maps http://a.tile.openstreetmap.org/1/0/0.png
Web Maps http://t0.tiles.virtualearth.net/tiles/r3.jpeg?g=761&mkt=en-

US&shading=hill&token=AleG3-
6ztIKYqpoKMt42z6FgSieHvJHhNkQ1f1
Web Maps http://t0.tiles.virtualearth.net/tiles/r0.jpeg?g=761&mkt=en-

US&shading=hill&token=AleG3-
Web Maps http://t0.tiles.virtualearth.net/tiles/a0.jpeg?g=761&mkt=en-

US&token=AleG3-ooLyYAIGSuWGVAC4P_e4U_zPe-



Install http://crl.verisign.com/pca3.crl
Install http://csc3-2009-2-crl.verisign.com/CSC3-2009-2.crl
Web-update http://www.llamasoft.com/Downloads/SupplyChainGuru/SCG7/
SCG_Update.ini
SCGWeb.exe

SCG Actions URL
SCGWeb.MSI
SCGWeb54.cab
SCGWeb75.cab
SCGWeb95.cab
SCGWeb96.cab
SCGWeb98.cab
SCGWeb299.cab
SCGWeb300.cab
SCGWeb302.cab
SCGWeb305.cab
SCGWeb315.cab
SCGWeb530.cab
Web-update other SCGWebXXX.cab numbers in future web-updates
RateWare XL /AdminManager/services/RateWareXL


Index
Symbols T
.NET Framework 77 Tableau 87
A U
activating 86 user agents 77
B
Bing Geocoding Service 85
Bing Maps 86
temporary license key 86
G
Google Earth 85
H
hardware requirements 75
harware requirements 74
M
memory requirements 76
Microsoft SQL Server 79
model sizing 75
O
Operating System 74, 76
P
prerequisite software 77
R
RateWare XL 87
remote hosts 77
requirements 74
hardware 74, 75
memory 76
software 77
S
sizing 75
SQL Server 79
system requirements 74
Supply Chain Guru Release Notes 8.4 105

Index
106 Supply Chain Guru Release Notes 8.4

Supply Chain Guru Release Notes

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LLamasoft® Supply Chain Guru™ Release Notes 8.4 i

2 Known Issues ..................................................................... 59

LLamasoft® Supply Chain Guru™ Release Notes 8.4 ii

LLamasoft® Supply Chain Guru™ Release Notes 8.4 iii

iv LLamasoft® Supply Chain Guru™ Release Notes 8.4

LLamasoft® Supply Chain Guru™ Release Notes 8.4 1

LLamasoft® Supply Chain Guru™ Release Notes 8.4 2

What’s New in Version 8.4?

LLamasoft® Supply Chain Guru™ Release Notes 8.4 3

 Enhanced Infeasibility Diagnosis

Removal of Transportation Policies Requirement

4 LLamasoft® Supply Chain Guru™ Release Notes 8.4

To populate the Baseline Shipments table from Baseline Output

. You see the Baseline Importer form.

Baseline Modeling Rules

LLamasoft® Supply Chain Guru™ Release Notes 8.4 5

Note: Baseline Shipments does not support split shipments.

Field Description Type

6 LLamasoft® Supply Chain Guru™ Release Notes 8.4

Field Description Type

Force Ship Direct One of Yes/No Yes/No

LLamasoft® Supply Chain Guru™ Release Notes 8.4 7

Field Description Type

Status One of Include, Exclude. Short Text (50)

Baseline Output Shipments

Shipment The identifier of the baseline shipment.

8 LLamasoft® Supply Chain Guru™ Release Notes 8.4

Transit Override Additive Cost

Inbound Hub Optimization

Configuration File Generation

To create the Transportation Optimization configuration table:

LLamasoft® Supply Chain Guru™ Release Notes 8.4 9

Geocoding and Distance Providers

To authorize the PTV provider:

Transportation Optimization Improvments

10 LLamasoft® Supply Chain Guru™ Release Notes 8.4

Standard Optimization and Asset Optimization

Safety Stock Optimization

Service Level Optimization

LLamasoft® Supply Chain Guru™ Release Notes 8.4 11

a customer-facing facility to achieve a specific objective. The objectives and

Note: Service Level Optimization constraints apply to customer-facing sites only.

Service Level Optimization Considerations

12 LLamasoft® Supply Chain Guru™ Release Notes 8.4

Running Service Level Optimization

To run Service Level Optimization:

Service Level Optimization Examples

Target Safety Stock

DC Product1 0.9 Type2 34 111.7808 6

DC Product2 0.9 Type2 34 8.38356 6

DC Product3 0.9 Type2 34 55.89041 6

DC Product4 0.9 Type2 34 5.03014 6

DC Product5 0.9 Type2 34 4.47123 6

MFG Product1 0.8 Type2 0 0 0

MFG Product2 0.8 Type2 0 0 0

MFG Product3 0.8 Type2 0 0 0

LLamasoft® Supply Chain Guru™ Release Notes 8.4 13

Target Safety Stock

MFG Product4 0.8 Type2 0 0 0

MFG Product5 0.8 Type2 0 00 0

Minimize Cost Example