Multi Echelon Inventory Optimization


Multi Echelon Inventory Optimization (MEIO)  provides the best inventory positioning across the supply chain to achieve the required customer service levels. Modeling the entire supply chain network from supplier to customers provides the means for understanding the drivers of inventory in the supply chain. It enables making push/pull decisions for different locations and products while quantifying the cost and performance trade-offs. Other applications include making decisions on committed service times from one facility to another, effectively planning for new product introduction and simulating the results to analyze

inventory order performance. MEIO has the ability to move the efficient frontier for tradeoffs between responsiveness (service level) and efficiency (cost of holding and transporting inventory).

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:

  • Take advantage of the Opalyics Cloud Platform
    • Project and scenario management
    • Collaboration with your team
    • Built in visualization
    • Scalable deployment
  • Fast solver
  • Reliable results
  • Enhance S&OP capabilties

Related Blogs

Inventory Optimization Complements Lean

The Optimization in MEIO

Untapped Opportunities for Inventory Savings

For a quick demo watch our Getting Started Video 


Example:  CPG Company Inventory Optimization

Company: Consumer products company

Background: Company need to reassess its inventory allocation in plants due to a reorganization.

Outcome: 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. While the company had previously invested in MEIO technology, the VP of Supply Chain “trusted Opalytics to give the right answers”.

MEIO solution comparison