Demand Works Smoothie - Safety Stock Optimization

By: Demand Works  09-12-2011

Smoothie® SP considers lead times, forecast error and desired service levels to calculate optimal inventories. Calculated safety stocks can be time-based or quantity-based. Minimum inventory levels can also be managed using fixed policies like minimum quantities or days of cover, and statistical and fixed policies can be blended. For example, the safety stock policy can be the greater of 100 units or a 98 percent service level.

Each item or item-location in Smoothie can have different replenishment and safety stock policies. Static policies like minimum order quantities or lead times can be imported from the ERP system, or they can be managed within Smoothie. Policies can be changed and simulated for groups or classifications of items. While simulating group or item-specific changes, the user can immediately evaluate the impact on projected inventories in units or inventory cost, enabling rapid and informed inventory optimizations.


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