Inventory optimization is the art of having the right inventory levels to balance the unpredictable demand with limited supply whilst also maximizing profit.
A good demand plan is only the beginning. In combination with the supply plan, the inventory plan results. The overall plan should respect all constraints and reflect the cost trade-offs for the business as a whole.
The production, supply and transportation calculations are driven by a set of parameters including minimum amount, fixed multiple, maximum amount, maximum interval, days cover and various delays to reflect processing durations and transportation delays. Including capacity as a constraint will make the equation more difficult and will probably lead to preproduction but within the constraint of shelf life. Next to these constraints, the costs or margin contributions are included to ensure that the best plan is generated.
Outperform offers an integrated mobility feature that can help optimize the system and the system work flow. Triggers can be setup to notify any person within the company or management on their mobile device, on any reporting function within Outperform. This function is especially used to trigger messages for inventory issues, it streamlines processes in line with business strategy and allows action, if any, to be taken much quicker.