Every supply chain team must balance inventory investment with service level performance. Without balance, excess inventory accumulates throughout the supply chain and traps vital working capital.
Inventory Optimization (IO) can have a huge financial impact by minimizing inventory and freeing up working capital while guaranteeing the right stock is on hand, when and where it is needed. A form of prescriptive analytics, IO determines where and how much stock to hold to meet a designated service level while complying with specific inventory policies. Multi-echelon Inventory Optimization (MEIO) goes a step further to optimize stock locations and amounts across all sites and nodes in a supply chain network.
This e-book explores IO and MEIO strategies to help minimize costs while meeting customer service requirements, and provides examples of how to build these capabilities at your company.