Inventory Optimization is the art of having the right inventory levels to balance the unpredictable demand with limited supply whilst maximizing profit.
A good demand plan is only the beginning. In combination with the supply plan and, 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 the 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 might lead to preproduction within the constraint of shelf life. Next, to these constraints, the costs or margin contributions are included to ensure and generate the best plan.
Outperform Planning offers an integrated mobility feature that helps optimize the system and the system workflow. Notifications can be set to notify any person within the company, including management, on their mobile device, for any reporting function within Outperform Planning. This function is especially used to trigger messages for inventory issues, it streamlines processes in line with business strategy and allows the action, if any, to be taken much quicker.