Multi-Echelon Inventory Optimization
- Topics:
- Inventory Management
- Tags:
- Echelon,
- Evant,
- Inventory,
- Inventory Optimization,
- Management,
- Network,
- Networking,
- Optimization,
- Strategy
- Source:
- Evant
FREE Registration is required
Overview: The optimal deployment of inventory is a vital business function for an enterprise. As Forrester Research pointed out in a recent report, the ability to increase inventory turns is a key differentiator between highly successful and more poorly performing companies. Managing inventory in a multi-echelon network vs. a single-echelon network presents major pitfalls. One is the failure to achieve true network inventory optimization, because replenishment strategies are applied to one echelon without regard to its impact on the other echelons. A network view of inventory usage up and down the demand chain is absent when you are only dealing with a single echelon of locations. A multi-echelon distribution network presents many opportunities for inventory optimization that the enterprise must pursue to offset potential increases in transportation, warehouse and occupancy costs. The key to achieving those savings is to use a true multi-echelon strategy to manage inventory. Taking the right approach can yield rewards on both sides of the inventory equation—better customer service with less inventory. Using a true multiechelon approach is the ultimate win–win strategy for inventory management
(Is this item miscategorized? Does it need more tags? Let us know.)
Format: PDF | Size: 397KB | Date: Jan 2003 | Pages: 15
