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. Inventory Guru, the LLamasoft inventory optimization solution, enables companies to analyze and properly categorize demand, factor all aspects of inventory for both existing and new supply chain structures and simulate real-world behavior to enable true what-if capabilities. The result is a prescription for the right levels of working capital across a continuously-changing business.
The LLamasoft multi-echelon inventory optimization solution enables analysts to create accurate models across all echelons of the supply chain, with a full inventory plan that includes optimal safety stock, cycle stock and pre-build inventory, as well as strategies for promotions. Companies can also use supply chain simulation 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:
- Automatic demand analysis and classification 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