Breakthrough in Multi-Echelon Inventory Optimization

Ann Arbor, Mich.—Oct. 3, 2013LLamasoft, a global provider in supply chain design software solutions, announces its multi-echelon inventory optimization technology that helps companies better understand demand variability, leading to right-sized safety stock and a healthier overall business. By acting as a guard against inventory variability, the new Inventory Guru enables companies to save money while still meeting service requirements.

Traditional inventory optimization tools assume that all demand follows a normal pattern, resulting in either too much inventory, or stock-outs and lost sales. Inventory Guru is powered by Adaptive Intelligent Inventory Optimization (AI+IO) technology, a demand classification algorithm created by LLamasoft. AI+IO thoroughly analyzes and automatically classifies demand patterns, then recommends right-sized end-to-end stocking levels and ordering strategies.

Inventory Guru is a fully integrated module within LLamasoft Supply Chain Guru supply chain modeling and design software. This integration enables companies to not only analyze and properly categorize demand, but also factor in all aspects of inventory for both existing and new supply chain structures, and simulate real-world behavior to enable true what-if capabilities. The result is a prescription for the right levels of working capital across a continuously changing business. 

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