Smart Material Planning for MASTER ITALY:
Artificial Intelligence in Logistics

MASTER ITALY, an industry leader in the design and manufacture of high-tech accessories and components for aluminium windows and doors, operates in a market where supply management and production planning are fundamental for both cost containment and customer service.

To support the company, Exprivia has developed the Smart Material Planning Project, an innovative solution designed to optimise internal logistics costs and improve stock management.

Objective Logistics

The project aimed to identify algorithms to optimise the warehouse (kanban managed according to the 'lean' methodology), make internal logistics more efficient while increasing customer service.

The scenario imposed as constraints the mitigation of production stoppages caused by stocks not aligned to production requirements and the improvement of production scheduling for more efficient resource management.

Artificial Intelligence Approach, Solutions and Techniques

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

In particular, the realisation of analytical models based on the study of time series (coinciding with the consumption of production materials), made it possible to identify those materials that are particularly 'high rotating' for which a logic of evolution of the classic kanban methodology was implemented, offering a series of insights to support production planning and the stock manager.

In addition, statistical simulations based on the Monte Carlo technique were used to provide What-If Analyses comparing the two scenarios, i.e. stock management with and without 'jumbo orders', which represent peaks in semi-finished product requirements occurring without warning.

An integrated platform was implemented to effectively manage 'jumbo' orders that require a large amount of material and require ad-hoc machining processes, with a specific dashboard to monitor performance and results. Technologies used include Docker for consistent application management, a Python stack for advanced machine learning algorithms, and Grafana for real-time data visualisation.

Benefits from Digital Transformation

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

• Minimisation of production downtime, ensuring unprecedented business continuity.
• Improved planning, with increased capacity for scheduling production activities.
• Stock optimisation with reduction of kanbans in supermarket warehouses.

Results of Technological Innovation

The Smart Material Planning project demonstrated how technological innovation can transform the supply chain. Exprivia provided MASTER ITALY with the necessary tools to optimise processes, reduce costs and improve overall efficiency.

With this solution, MASTER ITALY has positioned itself in a competitive environment, ready to face the volatility of the modern market.