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Inventory
In these days of increased competition, setting inventory policies using simple rules of thumb (e.g., safety stock is two weeks of demand) is an ineffective use of a valuable resource—cash. Furthermore, spreadsheets are not an adequate 'system' for capturing and executing an effective inventory strategy.
An optimal inventory strategy is key to unlocking ‘excess’ cash from your supply chain and, as such, requires a thorough, systematic and scientific approach. The design and implementation of an optimal inventory strategy can reduce investment in inventories by 10, 20, and even 50% with no deterioration, and often an increase, in customer service. While inventory theory has been around for many years and has been used frequently, it has seldom found proper application due to its inherent complexity. Fortunately, the researchers at Factory Physics, Inc. have been able to cut through the complexity to develop unsurpassed inventory applications that employ powerful optimization capability as well as easy-to-understand visual illustrations. C-Suite's Inventory Optimizer is the first inventory application built using the Factory Physics framework.
C-Suite's Inventory Optimizer measures the effectiveness of existing inventory policies as compared to optimal inventory policies. This analysis provides easy and effective insight into improvement opportunities. The Inventory Optimizer includes a set of “Efficient Frontier” graphs that show current inventory performance in relation to optimal performance. C-Suite’s Efficient Frontiers can be calculated for one part, ten parts or ten thousand parts, whichever configuration best suits your business. Inventory Optimizer's Efficient Frontiers allow decision makers to compare the current performance of the supply chain with any point on the Efficient Frontier to determine how much improvement is possible by simply adjusting inventory policies. Changing inventory policies is one of the 'lowest hanging fruit' of the available improvement opportunities for any manager. C-Suite's Inventory Optimizer makes policy changes clear and easy.
C-Suite's Inventory Optimizer is an innovative optimization algorithm built on well established inventory modeling theory strongly enhanced through years of industry application of Factory Physics principles. Inventory Optimizer calculates the minimum inventory investment required for a desired service level. There are always trade-offs between demand, replenishment time, inventory investment, and service among others. Inventory Optimizer quantifies important trade-offs and provides stakeholders with the information required to make fact-based decisions on inventory strategy. Inventory Optimizer's intuitive interface allows you to quickly measure the trade-offs, compare a wide variety of inventory scenarios, define strategy and free the cash you have tied up in an unnecessary inventory investment.
Inventory Optimizer takes the guess work out of setting inventory policy and bridges the gap between inventory strategy and implementation of improvements.
