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SeniorINVENTORY for inventory optimization

SeniorInventory helps you reduce the inventory planning time by 85%

SeniorINVENTORY automates and optimizes the stock management and replenishment processes of a company, based on the historical order data, giving it the opportunity to optimally prepare the stock for future sales, reducing at the same time the risk of overstock and the number of call-backs of orders.

The SeniorInventory supply system tells you what to order, when to order, how to order and where to store the goods.

This way you can obtain a perfect balance between business profitability andservice quality.

In what situations is it necessary to have a system for stock planning and forecasting?

  • When the demand is variable.
  • When the grow of new SKU’s is continuous.
  • When the inventory turns is low.
  • When goods expire because they are in excess.
  • When there is no ability to easily forecast.
  • When setting Min, Max and Safety Stock values takes too long.

How it faces challenges?

Automates the inventory planning process through:

  • Forecasting and planning
  • Replenishment
  • Optimization

It is easy to use and accessible:

  • Easy to use, but effective
  • Alert users about the problems that may occur

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How much inventory is needed to protect for spikes over a particular period of time at a desired service level?

The graphs below show the situation of two products with the same evolution of future demand. However, you can see in the left example that in the past, the demand had some big fluctuations, so called “Random Demand”, as opposed to the example on the right where the demand has been constant.

Cerere variabila

Cerere constanta

Example 1: For the product with random demand we have the following influence factors that will help us correctly determine the necessary inventory:

  • Lead time – the minimum period between placing a replenishment order and receiving it from the supplier – is 15 days
  • Order Frequency – the period between replenishment reviews – is 15 day
  • Planning Horizon – the supplier lead time plus order frequency – is 30 days
  • The Forecast for the Planning Horizon is 110 and the Target Service Level is 99%.
  • Considering all this factors, we will get an Ideal Stocking Quantity of 158.

 Why more than the forecast? Because the randomness of the demand requests a higher safety stock

Example 2: But what happens if the demand is constant? We know that for this product the Forecast for the Planning Horizon is 110 and the influence factors are the same:

  • Lead Time: 15 days
  • Order Frequency: 15 days
  • Planning Horizon: 30 days
  • Target Service Level: 99%
  • Which results in an Ideal Stocking Quantity of 119

Why less than in the previous example? Because the demand is constant.

Learn how to turn stocks into competitive advantage for your business

 

The inventory planning system SeniorINVENTORY incorporates the latest technology in terms of forecasting, planning, and determining the optimal amounts for stock items. The workflow is described in the following scheme:

inventory optimization

1. By analyzing the historical demand, the forecast and the Target Service Level are set.

2. Using the forecast, the system calculates a “Stocking Quantity” (SQ) that will meet the Service Level objective.

3. Then, it recommends the quantity to buy or transfer based on the current inventory and its Stocking Quantity

4. In order to ensure the complete information flow inside the company, SeniorINVENTORY can be integrated with SeniorERP. This way, it will submit all replenishment and transfer orders, based on the stocking quantity of each order.

5.Another advantage of the system is that it allows you to set Planning Groups – groups of items with the same characteristics. The review times ensure that the items are regularly reviewed at approximately the same order frequency. This greatly reduces the number of items on the shortage list, and helps maximize efficiency. We also support the concept of “Scheduled Reviews” for planning groups. For example, a critical planning group could be reviewed daily, while a vendor planned group might be reviewed once per week and a group of low volume/long lead time item/location items might be reviewed only once per month.

6. However, there are times when buyer/planners need to change the system recommendations. For example, money for inventory may be tight. Also, the sales force may have given the word that a very large order is coming up that has not been factored into the forecast. Or perhaps the best thing to do is make a lateral transfer of material from another location. Therefore, the application’s replenishment planning capability enables changing recommendations.

 

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