Optimized inventory plans

Inventory Optimizer uses powerful optimization technology to determine optimal safety stock levels, order quantities and order frequencies for all of your products.

Business constraints such as existing procurement contracts, available warehouse space and production capacity are all taken into account, ensuring that your inventory plans are always fully feasible and that the capital tied up in your available stock is serving your business in the best possible way.

Powerful review process

Inventory Optimizer lets you analyze the impact of your decisions – before you implement them. Every time you run the optimizer, the system recalculates your optimal safety stock levels and replenishment parameters.

Your users can review the results and compare with the existing settings, and choose to pass the results to the Optimity supply chain planning products and/or your ERP system.

Real-time inventory visibility

With Inventory Optimizer you’re always in full control – empowered to act before potential stock issues turn into real problems.

Real-time visibility gives you a clear view of every item’s current stock position and forward projection. And because the system automatically alerts you to any issues, and allows quick drill down from aggregated views, your inventory managers can be much more efficient.

Dynamic safety stock optimization

Optimizing safety stock is about determining the proper balance between the cost of missed sales and the cost of holding stock. Inventory Optimizer automatically calculates the optimal inventory and replenishment parameters over time, including safety stock and replenishment frequency – for each product and location. In doing so, the tool considers factors such as demand variation, supply lead time, replenishment frequency, supply lead-time variation, standard cost and profit contribution.

Seasonality and other forecasted variations in demand and supply are also considered in order to determine the best safety stock levels at every point in time.

Multi-echelon inventory management

In larger supply chains, balancing the stock held in your central warehouse vs. regional distribution centres is critical. There are many factors that determine the optimal inventory and safety stock distribution, from customer ordering patterns and service level requirements, to supply and production lead times. Inventory Optimizer easily solves this problem.

"With Optimity we now have the ability to dynamically optimize our safety stocks
to match our target service levels.”

Patrik Färdow, COO

Inventory optimizer features

Account for profit margin and impact from lost sales as opposed to just costs for holding inventory	Identify optimal service levels for all products
Integrate with your ERP so you can compare current versus optimal settings and allow update of ERP	Consider cash constraints
Establish order parameters - such as optimal safety stock and replenishment frequency for each product in each location	Highlight alerts and exceptions on aggregated level and easily drill down to details
Consider seasonal variations to calculate optimal time phased safety stocks throughout the year	Run what-if simulations and alternative scenarios

Download the White Paper - Setting the Optimal Safety Stock

Setting the right safety stock is of critical importance.
It’s the buffer that ensures you can manage the fluctuations in demand and supply. You want to find the optimal mix so that you can ensure excellent service levels, but at the same time not tie-up capital in surplus stock.
Read the white paper and learn how you find the right balance.
Download the White Paper now >>

Inventory Optimizer

“With Optimity, we not only serve our customers better with less stock, we also plan our sourcing to get better prices and avoid expensive spot market purchases.”