// ROBOTICS AND SMART FACTORIES TERM
Inventory Optimization
Inventory optimization uses advanced analytical techniques to determine the ideal levels of inventory to hold across a supply chain, balancing service levels and costs.
TECHNICAL DEFINITION
Inventory optimization is an advanced supply chain planning strategy that employs mathematical models and algorithms to determine optimal inventory levels across multiple echelons, balancing service level targets, carrying costs, and potential stockout risks.
BACKGROUND
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the secondary sector of the economy. The term may refer to a range of human activity, from handicraft to high-tech, but it is most commonly applied to industrial design, in which raw materials from the primary sector are transformed into finished goods on a large scale. Such goods may be sold to other manufacturers for the production of other more complex products, or distributed via the tertiary sector to end users and consumers.
READ MORE ON WIKIPEDIASYNONYMS & ALIASES
- Stock optimization
- advanced inventory planning
- MEIO
- inventory balancing
USAGE NOTE
Inventory optimization helps businesses reduce capital tied up in stock while maintaining high customer service levels.
DEVELOPERS
Organizations developing technology related to Inventory Optimization.
Develops SAP Integrated Business Planning (IBP), which includes an inventory optimization module that uses advanced algorithms and machine learning to manage multi-echelon inventory, set optimal stock targets, and improve service levels.
A leading supply chain management software company that provides AI-powered solutions for end-to-end inventory optimization, demand forecasting, and automated replenishment through its Luminate Platform.
Specializes in service-level-driven supply chain planning software. Their technology uses probabilistic forecasting and machine learning to optimize inventory for demand uncertainty and supply volatility.
Offers Oracle Fusion Cloud SCM, which leverages AI and IoT data to provide intelligent demand forecasting, replenishment planning, and real-time inventory visibility to optimize stock levels across the supply chain.
Provides the Logility Digital Supply Chain Platform, which uses AI and advanced analytics to optimize inventory, improve forecast accuracy, and align inventory policies with business strategy.
Provides cloud-based ERP and SCM solutions with integrated inventory management capabilities that use data analytics and machine learning to optimize stock levels, reduce carrying costs, and prevent shortages.
Offers a connected supply chain platform that uses AI and real-time data from a vast network of partners to provide demand sensing and multi-enterprise inventory optimization.
Known for warehouse management, this company also offers Manhattan Active Inventory, a solution that uses machine learning to precisely position inventory and optimize stock levels across an entire distribution network.