The key outputs of the application are:
1. Optimal planning parameters. A set of optimized planning parameters for each item-location combination. These parameters include safety stock, lot size, stock vs. non-stock recommendations, and release policy recommendation, such as MRP/Time phased or Pull (Reorder Point, Min-Max, Kanban).
2. Prioritized actions and review process. A prioritized list of items to guide the planning team’s activities to the most important actions on a routine basis.
3. Management control and reporting. Flexible reporting for all levels of the organization to monitor progress, trends, and team effectiveness, and "what if" scenario planning capability to improve decision-making and enable the application to adapt to the ever-changing needs of the business.
Its simplicity, accessibility and affordability make this application truly "Inventory Optimization for Everyone™".
Application description
The structured process that is central to the InvOpt.com application is comprised of four steps. Please click on any of the steps, register and gain access to an in-depth description.
Step 1. Data Management. Contrary to expectations, inventory optimization does not require a large amount of data. You prepare and upload your item master and usage history data files directly into InvOpt.com.
Step 2. Business Strategy Alignment. In this step, items are segmented automatically based on their risk and reward characteristics. Your business policies, rules, constraints and objectives are translated into a planning strategy that enables InvOpt.comÒ to produce an optimized service and inventory plan.
Step 3. Optimization. InvOpt.com uses exact and fast stochastic combinatorial algorithms to calculate optimal values and recommendations for your safety stocks or reorder points, lot sizing, stock vs. non-stock and release policy choice. A summary of the results of the optimization are provided in the InvOpt.com Business Case that summarizes the overall opportunity and compares the actual levels for service and inventory with those based on the current planning parameters in use and those derived from the optimal parameters.
Step 4. Review and Execution. Most companies need to plan thousands of items with very limited planning resources. InvOpt.com provides a systematic process to focus the planning team on the actions that will yield the maximum benefit for the organization. Finally, the new plan needs to be implemented in the ERP system by updating the planning parameters. Output reports are customizable for the needs of your business system.