Multi Echelon Inventory Planning & Optimization (MEIO)
Inventory Optimization is one of the most important supply chain initiative that companies can pursue to improve efficiency and increase shareholder value.
What is MEIO and Why MEIO is so Important?
If your supply chain holds inventory at different locations along the supply chain, the question is how much of what should be kept at each stage? This depends on demand variability as well as supply uncertainty. MEIO, Multi-Echelon Inventory Optimization, methodology uses such uncertainty to decide the optimal levels of inventory for each type of inventory at each location. There are different stochastic and search techniques to accomplish this. The algorithms that are used mostly appear as black boxes and therefore users do not have much insight as to why certain recommendations are made. To this end, look for systems that can interact with the users and explain why a decision(s) is made. MEIO, when used in the right way can reduce inventory by 30% while increasing service levels to high 90’s. Furthermore, it gives the user the ability to set service levels for different product, customers and regions and examine the cost as various service levels are tried. This is a very powerful to find the optimal level of operations for your supply chain and provide better visibility for your suppliers and customers.
Benefits & Features
- Cost-based optimization to deliver highest service level at lowest cost
- Defines service levels at every level of supply chain from raw material to intermediate buffers and WIP to finished goods and even customer sites as well as supplier sites
- What-if capability to examine different scenarios for cost and delivery performance
- Works at different levels of aggregation or customer grouping. It can analyze by SKU and customer or by customer groups and product groups
- Fast processing time allows quick results for fast decision making
- The data requirement is minimal and the implementation takes weeks
- It can be deployed as SaaS with little up-front investment
- Works at different levels of aggregation or customer grouping. It can analyze by SKU and customer or by customer groups and product groups
- Fast processing time allows quick results for fast decision making
- The data requirement is minimal and the implementation takes weeks
- It can be deployed as SaaS with little up-front investment
Additional content coming soon!
Collaborative Replenishment Planning
Adexa has extended its Predictive Analytics (APA) solutions to include an option for Replenishment Planning. Similar to the current Demand Planning, Inventory Planning (MEIO), and Supply Visibility solutions already offered on the Adexa Predictive Analytics platform,
Any company that is interested in a lean type of supply planning solution, to monitor inventory levels, set optimized reorder points, calculate reorder quantities, suggest planned releases, and calculate expected future inventory levels would benefit from this solution.
- (s, Q) – Reorder Point with Reorder Quantity (optimized, days of supply, or user defined)
- (s, S) – Reorder Point with Order up to level (similar options to Reorder Quantity)
- (MTO) – Make to order
- (s, S, t) – Periodic ordering with fixed or variable quantity
- User can configure other policies based on changing the configuration of policy components
Adexa Collaborative Demand Planner (CDP) and Inventory Planning solutions
- Memory resident data base with real-time analytics and edit
- Role based system for viewing and editing values in the system
- Able to slice and filter data based on an unlimited number of
- Editing at any level of the hierarchy with all measures in the
- Excel Real Time UI
- Live connection to use Excel as a user interface
- Ability to view and edit values in
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