Supply chain inventory optimization demonstration video

Demand uncertainties cause product availability problems such as stock-outs and missed customer service level targets. Supply chain inventory management is the solution.

In inventory management, safety inventory reduces shortages by helping ensure a product remains available during times of unpredictable demand. This type of inventory cushion is also called safety stock or buffer inventory.

The main reasons for carrying safety stock

• In preparation for unexpected events and disruptions. For example, if your product gets delayed at the border, you can continue to fulfill orders.
• To compensate for forecast inaccuracies. One month you might sell more than you forecast because of unforeseen demand fluctuations.
• To ensure a smooth-running supply chain. Keeping safety stock helps your workers focus on fulfilling customer orders instead of needing to locate and reorder parts due to shortages.
• Maintaining a high level of customer service.

Simulation-based inventory optimization

A simulation model considers complex supply chain behavior over time and describes the system as a set of logical rules. With dynamic simulation, you can represent the supply chain operations as they are with the result that safety stocks reflect operational realities and can be more accurately defined.

In anyLogistix, Safety Stock Estimation is a simulation-based experiment. You can determine the optimal amount of safety stock in warehouses with consideration to the desired service level and better avoid risks associated with fluctuating demand.

The safety stock estimation experiment results indicate the optimal product stock volume needed to provide a predefined service level. Importantly, anyLogistix gives you a detailed and clear visual representation of any related metric. For example, you can obtain the safety stock value for each product, factory, or DC and visualize results in tables and charts.

More about inventory optimization and safety stock estimation >>

To learn how to perform supply chain inventory optimization in anyLogistix, watch this how-to video of a supply chain in Britain as an example.

Inventory Management: Safety Stock Estimation

Watch the webinar on YouTube.

Learn more about supply chain inventory optimization:

•   Simulation-based Inventory Optimization with anyLogistix [webinar recording]
•   Safety stock estimation in supply chain management [learn more]
•   anyLogistix resolves inventory optimization and planning challenge [learn more]
•   Simulation-Based Inventory Planning for the Digital Supply Chain Era [white paper]
•  Supply Chain Network Design for a Telecom Provider [case study]