Business inventory takes many forms, whether it be finished goods, work-in-progress, raw materials or spares parts.
Inventory is required for two main purposes:
Inventory optimisation refers to having the correct amount of inventory, of the right products or materials, in the right place and at the right time, so to achieve the service level required. The trade-off between the total cost of inventory and the resulting service level, as well as its resulting impact on the company´s profit needs to be understood.
We have developed an Inventory Optimisation methodology that combines the operating, planning and cost elements of the system. Key aspects required for inventory optimisation typically include:
As with the other optimisation systems, the system allows the running of multiple scenarios to analyse the networks sensitivity and risks, as well as looking for new business opportunities to reduce costs.