Search Results for: inventory-optimization

Executive Summary

SAP has provided a misleading story on inventory optimization.
SAP has a specific extractive pattern when partnering with vendors.
We predict if SAP has a good chance of being good at inventory optimization and multi echelon planning.

Introduction to APO Inventory Optimization
I was recently doing research on SAP’s APO Add-In related to inventory optimization. I was surprised to read what appeared to be the beginnings of an inventory optimization product in one of the add-ins.
See our references for this article and related articles at this link.
SAP’s Old Story on Inventory Optimization …

… known as inventory segmentation) is a method of dividing the product location database so that different product location combinations can have different supply planning methods and different supply planning parameter management applied to them. Supply chain optimization is a method of tying the stocking level to the service level. Generally, inventory optimization has received substantial attention, but supply chain segmentation has received far less attention, even though for most companies they will receive more attainable benefits from supply chain segmentation versus inventory optimization. You will learn how supply chain segmentation compares to inventory optimization.
Our References for This Article
If …

Executive Summary

This is an introduction to inventory optimization that explains where MEIO fits into the supply chain planning space.
There is a relationship between service level and inventory strategy.

Introduction to Inventory Optimization
Inventory optimization is one of the vital supply planning methods. You will learn how inventory optimization works.
See our references for this article and related articles at this link.
What is Inventory Optimization
Inventory optimization is inventory system software that answers the question of how much to keep in inventory. In contrast, multi-echelon planning answers the question of where to keep stock in the supply …

… major supplier of software products in three areas: optimization, visualization, and business rules. The optimization products are ILOG CPLEX for LP (Linear Programming), and MIP (Mixed Integer Programming) and ILOG Solver for constraint programming.” – Real Optimization with SAP APO
They also offer products in the areas of network design to inventory optimization. The inventory optimization and multi echelon product are called IBM ILOG Inventory Analyst.
How Does Inventory Analyst Work?
ILOG Inventory Analyst is, according to IBM material, the only product they have that does both strategic and tactical planning. However, like SmartOps, it does not create transaction recommendations (i …

… in different locations is no longer treated as islands. 
The Companion Math to Inventory Optimization
Multi echelon Inventory Optimization is the companion technology or math to inventory optimization within inventory optimization and multi echelon (MEIO) software. Multi-echelon is the less well-known of the two parts of multi echelon inventory optimization software. (A definition of inventory optimization is listed in this article.)
Two Technologies in One Application
Multi echelon Inventory Optimization is an innovative use of two separate forms of optimization: inventory optimization and multi-echelon inventory optimization (but which I refer to as multi-echelon planning to reduce …