Inventory Modeling

Multi-Echelon Inventory Optimization

There is huge cost savings opportunity in driving working capital out of the supply chain. Right-sizing inventory to meet desired service levels at the lowest possible cost can save a company millions of dollars. The LLamasoft inventory optimization solution can provide you with a full inventory plan that includes optimal safety stock, cycle stock and free-build inventory, as well as strategies for promotions.

The LLamasoft multi-echelon inventory optimization solution enables analysts to create accurate models across all echelons of the supply chain. Companies can also use simulation technology to predict the service rates, inventory levels and site capacity constraints for any hypothetical supply chain structure.

LLamasoft’s multi-echelon inventory optimization solution provides:

• Demand analysis and categorization to identify different buying behaviors and unique variability traits
• True multi-echelon inventory right-sizing for all product types, including fast movers, slow movers, intermittent demand, etc.
• The optimal mix of postponement versus finished goods inventory placement

The ability to simulate any inventory strategy to test service level performance and capacity utilization