Inventory Optimization

The core GAINS™ solution offerings is the Inventory Optimization solution. It uses sophisticated, automated, and proprietary algorithms that consider a comprehensive set of cost and source variabilities, including service-level goals, demand plan error and lead-time for every SKU location. This results in: improved customer service levels and reduced expediting; reduced inventory investment at any given level of service; minimized total annual operating costs and maximized profit; and the management of supply variability.

Click here to view a video interview of GAINSystems CEO regarding Inventory Optimization at the Gartner Supply Chain conference.

The GAINSystems Inventory Optimization proprietary algorithms include:

• Inventory Policy Optimization algorithms to precisely achieve targeted service levels by comprehensively managing sources of planning error. These include: demand plan/forecast error, lead-time variation, supply yield, and optimal ordering cycles
• Service Level Optimization algorithms that automatically determine service levels uniquely for each item to achieve an aggregate target while minimizing or maximizing a business objective, (e.g. minimized total cost, minimum inventory, specific inventory turns target, maximum profit, etc.)
• Sourcing Optimization algorithms that determine the supplier(s) that provide the lowest-total-cost supply, including solving for the trade-off of unit cost, purchase minimums, and lead time
• Network Flow Optimization algorithms that determine which supply route provides the lowest-total-cost supply, considering lead times, minimums (line-item and PO-level), handling, and transportation costs
• Multi-echelon/Indenture Stocking Policy Inventory Optimization algorithms that determine whether or not to stock an item and at what service level. These solve for interdependencies among locations and/or within the bill-of-materiel (BOM) to devise postponement strategies and address customer expectations to minimize cost or maximize profit