Servigistics Multi-Echelon Optimization

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Maximize Customer Service Levels

By determining the lowest-cost solution to achieve desired service levels across a multi-echelon service network using advanced optimization solvers, Servigistics Multi-Echelon Optimization calculates optimal target stocking levels required to meet customer-facing demand at specified fill-rate targets. The software also calculates expected back-order delay, effective lead-time and network-wide customer-facing fill-rates, and uses marginal analysis to find the optimal stocking strategy. Additionally, it extends the capabilities of the part-location pair-based stocking level generation process by providing stocking recommendations to meet target service levels (and/or budget limitations) based on an extensive and holistic analysis of the repair, replenishment and procurement network for each part.

Servigistics Multi-Echelon Optimization Features and Benefits

  • Plans across multiple levels, locations and parts, to provide the lowest-possible inventory for a target service level

  • Optimizes the entire distribution network to benefit all subordinate locations without compromising their ability to meet demand

  • Extensive capability to optimize a service strategy differentiated by products, geography, customers and part characteristics

  • Combines service level targets with new buy budget and investment targets to generate optimal stocking plan

  • Scenario-based optimization allows easy what-if analysis of alternate service strategies and comparison of scenario optimization results

  • Configurable threshold base review and acceptance of the inventory plan

  • Yields significant inventory cost savings — often up to 25-40%