Key Capabilities of JDA® Inventory Policy Optimization, powered by Manugistics®:
- Individual and group level performance metrics
- Seamless integration with demand and replenishment planning
- What-if scenario planning
- Reverse safety stock capability
JDA Inventory Policy Optimization is a multi-echelon solution that helps companies determine safety stock levels at various locations in retail and distribution supply chains so as to achieve the user-specified fill rate or in-stock targets.
Given a demand picture that is variable in nature, distributors and retailers need to determine whether it is better to hold safety stock at the wholesale distribution center (DC), or at the warehouses closer to the retail stores, or at the stores themselves – as well as how much should be held at each level. Also, the business needs may be such that the performance service levels (such as fill rate) are set as customer-specific parameters.
Companies can model the structural elements of the Customer-Driven Value Chain, such as items, locations, transportation links with lead times, and supplier lead times. Users can also specify the performance criteria in terms of fill rates (targets, minimums and maximums). The demand forecast picture can be easily incorporated, and an optimization algorithm is employed to generate recommended stocking levels across the desired levels in the Customer-Driven Value Chain.
