Inventory planning
Focus on lean inventories
In the past, the primary objective was to support sales in achieving the sales targets set. Warehouse capacities played a subordinate role in this. This has changed dramatically in recent years - lean inventory management is essential to achieve cost efficiency and remain competitive. High inventories protect companies against uncertainties in demand. However, ever shorter product life cycles mean that these inventories may have to be sold off at a loss.
But then what is the right order quantity, the right order timing, and the right allocation of inventory within the warehouse network?
By applying classic calculation methodologies - such as the optimal order quantity "EOQ" - individual key figures can be optimized. Modern approaches such as Data Science offer additional potential to improve the various key figures in a mathematical model in the shortest possible time. Optimizations through stock transfers or the central storage of items with a low turnover rate can be simulated quickly.