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MEIO Introduction


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This is a quick introduction to Multi-Echelon Inventory Optimization. If Supply Chain inventory planning is important to you then you may find the information very useful. Please don't forget to hit the little Green button on the bottom to start playing the presentation with voice-over.

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MEIO Introduction

  1. 1. Adexa Planning Webcasts<br />Introduction To:<br />Multi-Echelon <br />Inventory Optimization<br />
  2. 2. Keeping The Customer Happy At What Cost ? <br />The decision on how much inventory to hold is a trade off between customer service and the level of working capital<br />Finance looks to keep costs down, and Customer Service wants high levels of service. <br />Cost<br />Savings<br />Customer<br />Service<br />
  3. 3. How Much Inventory Is Right?<br /><ul><li>To decide how much inventory is right we need to understand the strategy for the business, then perform tactical calculations to translate the strategy into policy.
  4. 4. The cost of inventory , like any other insurance must be weighed against the value of what is at risk and the chance of a loss happening</li></ul>Strategy<br />Tactical<br />Inventory<br />Cost of<br />Inventory<br />Commodity<br />Make-to-Stock<br />Demand Variability<br />=<br />Cost of<br />lost Sales<br />Specialty<br />Lead Time<br />Make-to-Order<br />
  5. 5. What Are Enterprises Doing Wrong?<br />By not measuring these critical factors a company will not have the right amount of inventory for each product.<br />As risk increases the amount of weeks of inventory should increase. <br />Just right<br />Too Much<br />Too Little<br />
  6. 6. Is There A Magic Formula For The Right Amount?<br />With the right data we can calculate the right amount of inventory to achieve a targeted level of service. <br />By putting in place a system and process to calculate optimum inventory targets, we can raise service and lower inventory<br /><ul><li>Same Service Level
  7. 7. Lower Cost</li></li></ul><li>How Do You Do the Calculations For A Full Supply Chain?<br /><ul><li>Inventory can be buffered throughout the entire supply chain to increase service and keep costs low.
  8. 8. Multi-echelon inventory optimizations (MEIO) look at the key inventory factors to determine where to best buffer inventory.</li></li></ul><li>For More Information<br />Visit:<br />Supply Chain <br />Planning Blog:<br />For Questions:<br />Bill Green at:<br />U.S. © 2010 Adexa, Inc. All rights reserved.<br />