What is Multi-echelon Optimization?
Identifying optimal safety stock levels is complicated when the supply chain has multiple tiers, numerous sourcing options varying lead times, shared components in bill of materials, complex demand patterns, and service commitments to customers. Supply chain analysts/planners must decide how much of each item to keep at each level, or echelon, to meet customer service goals at least cost that is feasible to the business. Intelligently adapting to widely-varying demand behaviors across all echelons is the key to better safety stock results.
Multi-echelon Inventory Optimization Software
Supply Chain Guru’s comprehensive multi-echelon inventory optimization (MEIO) identifies the best possible inventory stocking levels and its placement by holistically considering all echelons throughout the supply chain.
Using LLamasoft’s MEIO software you can:
- Model trade-offs between service and safety stock
- Recommend safety stock for intermittent and non-intermittent demand
- Reduce stock outs while right-sizing inventory