The goal of multi-stage inventory planning is to improve profitability by ensuring that inventory is strategically positioned and that the allocations of safety stock and committed service times are optimized.
Key Benefits
- Lower working capital commitment
- Improve service levels (5%-10%) while reducing inventory (20%-30%)
- Reduce excess and obsolete inventory
- Able to handle demand fluctuations more effectively
- Understand the financial implications of servicing customers based on actual cost of goods sold
- Understand service level trade-offs
Key Questions Answered:
- How do customer service policies affect our inventory requirements?
- What are our optimal inventory targets by location, by SKU?
- How can we adjust our inventory policies to become more efficient?