Mathematical Optimization and Automation of Inventory Replenishment Policies

To compete effectively today, a business needs to keep its inventory investment to a minimum and increase the velocity of its cash-to-cash (C2C) cycle, while at the same time enhancing the customer experience through improved service levels. This has been a tall order for organizations without a dedicated and motivated staff of “number crunchers” tirelessly tracking every detail of their organization’s inventory utilization. To address this need, Sierra-Cedar has developed a methodology to analyze inventory data and provide updated replenishment order policies that are calibrated to the customer demand and constraints associated with each inventory business unit. These order policies are mathematically calculated to provide optimal order quantities, minimize total cost associated with the purchase, delivery, and storage of products, maintain user-defined fill rates and minimum inventory turn requirements, and increase C2C velocity. This methodology allows for the calculation of appropriate safety stock for each item to compensate for lead-time and demand uncertainty, providing the desired service level (fill rate). The process can update PeopleSoft inventory order policies automatically, be set for manual review, or run in a “What If” mode for additional analysis. Sierra-Cedar’s Inventory Replenishment Methodology has helped clients to realize a reduction in the projected total annual cost of inventory ownership, providing measurable competitive advantage. Join our session to gain insight on how to improve your organization’s inventory replenishment.

Presented by Carl Ralph, Sierra-Cedar

Part of PeopleSoft Industry Day 2019: