Get Ibp Inventory Optimization

Powered by SAP HANA, this cloud-based solution combines sales and operations planning (S&OP), forecasting and demand, response and supply, demand-driven replenishment, and inventory planning. Automated, tightly coordinated supply chain planning processes. Advanced machine learning algorithms and planning capabilities.

During inventory planning the system plans the optimal stock of location products. To do so, it checks, for example, whether it would be beneficial to stock or destock at a location, and calculates the economic order quantity in combination with the safety stock for each location product.

Optimising your inventory allows you to reduce working capital (by reducing unnecessary inventory buffers) and improve your service level. It ensures that you get your customers what they want, when they want it - without holding too much inventory.

SAP IBP for Inventory helps companies manage supply chain risks by improving the efficiency of inventory investment. SAP IBP for Inventory sets inventory targets using best-in-class multi echelon inventory optimization, improving service levels while using 10-30% less investment in buffer stock.

Inventory planning is the process of determining the optimal quantity and timing of inventory for the purpose of aligning it with sales and production capacity.

Inventory optimization (IO) is a strategy for balancing the amount of working capital that's tied up in inventory with service-level goals across multiple stock-keeping units (SKUs). Modeling tools for inventory optimization can be deterministic or stochastic.

Inventory optimization is a set of best practices for organizations wanting to use less capital while maintaining a saleable inventory. This is a vital part of inventory management that factors in the volatility of supply and demand.