Inventory Optimisation
What is it?:
Having the right product in the right place at the right time.
This means for a total stock holding investment (financial) every product within each inventory class (A,B,C,D etc) has a consistent customer service level.
Eg. All “A” class products having an in-stock percentage of 99.8%
The key variable here is your “Safty Stock” regime and the ability for this to change (quantity) for every product in every location each period.
This is where the all the major benefits are derived from. Reduced inventory investment, increased customer service, increased sales and reduced logistics costs to name a few.
Inputs are Demand Forecast and ordering parameters