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planLM Inventory Strategy Solution

Multi Echelon Service Level Optimization

Inventory is essential for smooth execution of a supply chain. It is often the case that there are multiple levels of stocking locations for the same product along the fulfillment chain; i.e. customer facing regional warehouse store and sell a product, they are replenished from a national warehouse which serves as the secondary stocking location.

Businesses, intentionally or unintentionaly, keep inventory for several reasons. Safety stock is the portion of inventory that is kept for buffering agianst the unknowns of the supply chain. Supply and demand uncertainty, target service levels, and the lead time from prior stocking point in the chain dictate the safety stock requirement. It is possible to reduce the total system wide safety stock by optimizing target service levels, without sacrificing the end customer commitments,

Customer service requirements come in complex forms, some require product level order fill rate, some require aggregate stock out measures. It is a complex problem to optimize mathematically, but once it is done, it can result in 5%-10% reduction in your total inventory assets.

planLM Inventory Strategy solution provides robust analytical tools for minimizing total inventory assets by determining optimal locations and production stages that you need to keep inventory, replenishment policies and product level target service levels without sacrificing customer service commitments.

Key Benefits

Key Features

planLM Inventory Strategy solution is specifically designed for rapid execution of our strategy solutions implementation methodology. It features an end-to-end approach; validation of the raw data used in the analysis, building baseline and future scenarios, optimization, detailed simulation, scenario analysis, and implementation planning. Key features are as follows: