Optilogic’s inventory strategy design shatters decades-old inventory optimization approaches

Supply chain network design software innovator, Optilogic introduces Inventory Strategy Design, a breakthrough approach to inventory strategy that combines simulation and optimization for unprecedented accuracy in predicting service levels and preventing failures.

Optilogic’s Inventory Strategy Design is available today in Cosmic Frog, the first 100-percent SaaS-native supply chain design platform. Cosmic Frog leverages the power of the cloud to run numerous simulation scenarios to identify the best-fit inventory solution.

Decisions about how much inventory to stock and where have a massive effect on service level. Traditional inventory optimization cannot model inventory over time at the order and shipment level, and uses abstracted, aggregated demand, lead times, and capacity data.

This leads to inaccurate and unactionable inventory plans resulting in overstocks, service failures, and lost profit.

Unlike classical inventory optimization solutions, Optilogic Inventory Strategy Design:

-Eliminates the abstractions and assumptions of optimization—tune specific, relevant real-world controls such as customer orders, processing shipment times, replenishment frequencies, minimum order quantities, reorder points, and expediting costs to find the best inventory configuration

-Frees you from predefined cost and service definitions—define goals relevant to your own inventory strategy and evaluate trade-offs

Shows inventory performance over time so you can prevent potential stock-outs

-Runs hundreds of simulation scenarios in parallel and uses AI to continually predict better inventory solutions

“Inventory is money sitting around in a different form,” said Evrim Ertugrul, Deputy Head of the Corporate Logistics Department for Sumitomo Corporation of Americas. “The antidote is to convert this inventory to “ready money” to guard against randomness and uncertainty. Simulating inventory scenarios enables companies to experiment in a risk-free environment, providing a clear inventory target with the right balance of trade-offs between costs and service to hit the “bulls eye.”

“For years now, and especially of late, inventory has been given a bad name,” said Optilogic CEO Don Hicks. “Inventory isn’t the original sin—it’s your weapon and insurance policy against uncertainty. Inventory simulation is the only approach that can accurately predict inventory performance so you can avoid service failures and assess cost/service trade-offs to meet goals.”