Module E · Inventory Optimization

The Perfect Balance.
Cost vs. Service.

Stop hoarding "Just-in-Case" inventory. Our AI calculates the exact safety stock needed to hit your target service levels—balancing cash flow with customer satisfaction.

Optimize Stock How AI Works
-25%
Working Capital
98%
Availability
Auto
Rebalancing
Service_Level_Simulator
SKU: 10234-X
$ High
$ Low
80%
99.9%
95% Target
Target Service Level 95%
Req. Inventory
$1.2M
Lost Sales Risk
$45k

The "Just-in-Case" Trap

  • Static safety stock rules (e.g., "Keep 30 days everywhere") lead to bloating.
  • High inventory in slow-moving items, stockouts in fast movers.
  • Manual spreadsheets cannot handle demand variability calculation.

AI Optimization

  • Dynamic safety stocks that adjust automatically to demand volatility and lead time risk.
  • Segmentation (ABC/XYZ) ensures focus on high-margin items.
  • Releases cash flow without sacrificing availability.

Precision

Scientific Inventory Mgmt

Dynamic Safety Stock

Static rules fail because the world changes. Our AI continuously measures Demand Variability and Supply Lead Time Variability to resize safety buffers weekly.

  • Variability Analysis: Higher variance = Higher buffer. Stable = Leaner.
  • Seasonality Awareness: Ramp up before peak, drain down after.
  • Lead Time Risk: Auto-buffer if supplier performance drops.
Inventory Policy Comparison
Static Buffer (Bloated)
AI Buffer (Lean)
-30% Average Inventory Holding

Multi-Echelon Optimization (MEIO)

Treat your supply chain as a network, not islands. Optimize inventory placement across Factories, Central DCs, and Regional Hubs to minimize total cost while guaranteeing service at the store shelf.

  • Risk Pooling: Hold safety stock upstream (DC) to serve variable downstream demand.
  • Postponement Strategy: Delay allocation to regions until last minute.
  • Inter-Depot Transfers: Smart rebalancing between overstocked and understocked sites.
Central DC Stock: High
North Hub Lean
Central Hub Lean
South Hub Lean

OPTIMIZATION ALGORITHMS

Normal Distribution
Poisson Distribution (Slow Movers)
Bootstrapping
ABC/XYZ Segmentation
Economic Order Quantity (EOQ)

Free up cash. Keep the service.

See how much working capital you can release. Schedule a data audit to calculate your potential inventory savings.

Calculate Savings Back to Solutions