Search Results for: inventory-optimization

… consumption unless transportation lead times are particularly long.
This analysis of where parts of the field should be located goes by some names, including multi-echelon inventory optimization, re-distribution, and inventory re-balancing.
The independent dealer model continues to work against rational inventory pooling. AMR Research (now part of Gartner) does have a good point when they bring up this point in their paper Service Parts Planning and Optimization.

During the course of this research, we found SPP applications tended to be very tactical nature, solving specific inventory, fill rate, or service-level goals. Oftentimes service is still …

… parts. When other companies come in and service your products with parts a high percentage of the time, this says a lot about your service capabilities.
Customizing the Planning Method for Spare Part Planning
None of the major historical supply planning methods have ever been customized for spare parts before inventory optimization and multi-echelon. In industry, finished goods both tend to focus on where the majority of development effort goes. Part of this is driven by the fact that the finished goods market is significantly bigger and that service organizations tend to have much lower IT budgets to work …