Inventory Management is All in the Tradeoffs

Balancing Inventory and Service Levels With an Unmatched Level of Efficiency and Effectiveness

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Decisions are made every day to determine how inventory should be placed and moved. In today's highly dynamic world, without immediate and comprehensive inventory management analysis across your global supply chain, you risk expensive and flawed actions with each decision — the cost of which are poor service, higher inventory levels and lower profits.

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The objective is to calculate, establish and maintain a minimum acceptable inventory and to eliminate any inventory not required to achieve target service levels. Isn't it funny how the simplest sounding things can be the hardest to achieve?

The key to a breakthrough in inventory management is to address the root cause of the problem — empowering the organization as a whole to be more responsive to change. There are a significant number of variables that affect inventory and each variable implies risk. Model them all.

Understanding the Variables

Simulate any inventory variable on the fly for instant impact analysis. Project inventory levels by modeling changes in inventory parameters.

Managing Inventory Imbalances

Be alerted to inventory imbalances that have occurred or are anticipated to occur based on current conditions. Drill down to details to understand and manage inventory policy impact.

Determining the Alternatives

Collaboratively evaluate inventory planning and course correction alternatives according to their achievement against key inventory metrics and performance measures.

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The RapidResponse® Inventory Management, and Inventory Planning and Optimization applications enable you to:

  • Define target values by inventory category
  • Perform gap analysis of inventory valuation actuals against target values to understand deviations, with ability to drill to details for inventory policy examination
  • Simulate and compare policy changes, and their effect on actuals vs targets
  • Manage various time-phased and demand-driven safety stock planning and re-order point planning policies
  • Execute excess and obsolete inventory analysis
  • Establish cross-site inventory visibility, supported by simulation and execution of inventory transfer opportunities
  • Synchronize inventory changes with ERP
  • Perform single-echelon inventory planning
  • Perform multi-echelon inventory optimization
  • Manage assumptions

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With RapidResponse, you can perform inventory management in the same system as connected functions such as supply planning, master production scheduling and demand planning to ensure you make the right tradeoffs between service levels and inventory levels in order to maximize overall corporate performance.



An enterprise-wide view of projected inventory levels by inventory category - finished goods (FG), work in progress (WIP), raw materials (RM), showing comparison against targets.


Harness advanced analytics to plan safety stock values based on demand variability, supply lead-time and desired customer service levels.


Ability to identify which products/commodities/parts are not performing to target and ability to re-examine inventory policy settings for better performance.

Inventory Reductions Delivery Time Improvements Customer Quote

Inventory Reduction Targets Customer Quote

Operations Performance Benefits Customer Quote

Inventory Management Improvements Customer Quote

Cross Functional Supply Chain Visibility Customer Quote

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Our finished goods inventory was reduced by 20% within 3 months of deploying RapidResponse.

Shellie Molina, Vice President, First Solar
TVID: 589-4FF-2F6

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