A powerful application to determine:
- Your improvement opportunities for reducing inventory investment and increasing customer service (on-time delivery).
- Optimal inventory policies for your best combination of inventory investment and customer service.
In the illustration of a Stock Benchmarking plot below, each one of the points on the green curve are optimal solutions for inventory policy depending on what combination of inventory investment and service level you choose. Getting the optimal inventory policy is as easy as clicking on one of the points. Additionally, the blue curve illustrates the amount of inventory reduction and customer service level improvement opportunities available through either reduced demand variability, reduced replenishment time, reduced replenishment time variability or a combination of all three.
Stock Benchmarking provides a quick and easy approach for you to determine optimal inventory policy for your company. With an understanding of practical Factory Physics concepts, Stock Benchmarking makes a powerful tool to aid in Lean Implementations or for getting the most out of your existing ERP system.