Multi Echelon Inventory

COV segmentation

Overview

  • Determine inventory positioning across the supply chain to achieve your service levels.
  • Determine drivers of inventory in the supply chain
  • Guide inventory planning, push/pull decisions and trade-offs
  • Assist in making decisions on committed service times
  • Effectively plan for new product introduction
  • Calculate Committed Service Times across the supply chain
  • Simulate the results to see and analyze the behavior of products

The key drivers are:

  • Demand Average and Variability
  • Lead-time Average and Variability
  • Fill Rate Objectives
  • Order frequency, Order size, Minimum order quantity
  • Committed service times across the supply chain

Opalytics Technology Benefits:

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Example:  CPG Company Inventory Optimization

Challenge: Reassessment of inventory in plants due to reorganization

Solution: Created a baseline model of the network and ran scenarios to identify inventory drivers. Results were used to drive lower inventories in several business units. VP of Supply Chain said that “he trusted Opalytics to give the right answers”.

MEIO solution comparison