J. Friberg, Logistics Manager
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.
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.
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.
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.
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.
Patrik Färdow, COO
|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|