Inventory Optimization

Inventory Optimization

Business Need

Business Need

Due to China’s economic development and surging demand, many companies reallocate regional distribution centers from other countries to China. How to reallocate product inventory among plants, distribution centers and warehouses so as to minimize total cost while meeting customer demand and satisfying customer service level?

Optimization Solution

Optimization Solution

An inventory optimization solution is provided with mixed integer linear programming model to help companies to reallocate inventory among plants and distribution centers to meet customer demand and service level while considering pull, push logic, capacity constraint and other business restrictions.

Value from Optimization

Value from Optimization

With the inventory optimization solution, distribution center planners can easily know when to do replenishment and how many products to replenish. The resulting efficient replenishment policy can help the distribution centers to meet customer demand and satisfy service level while considering both pull and push logic.