Companies keep inventory as insurance to bank against the variability inherent throughout
the supply chain, specifically variability in demand, supply lead times, and transportation.
There is also a need to keep inventory to cover normal replenishment delays (cycle
stock).
Many of today's biggest supply chain improvement efforts focus on either reducing
variability that can be controlled or planning for the lowest possible inventory
necessary to counteract the variability that cannot be controlled.
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Companies cannot afford to stock out or to carry excess inventory, so LLamasoft’s
inventory & capacity modeling solution enables analysts to create highly accurate
models across all echelons of the supply chain, identifying the lowest-cost operation
plan. Users can also simulate their operations to predict the service rates, inventory
levels, and site capacity constraints for any hypothetical supply chain structure.
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Supply
Chain Guru®
Detailed Reporting for In-depth
Supply Chain Analysis
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Related Information
In under an hour of your time, we can demonstrate how LLamasoft
Technology and Professional Services can help you lower costs, improve service rates,
and reduce risk throughout your supply chain.
Request Demo
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A global chemical producer has numerous production and distribution methods
to support their product mix. Demand for many of these products is seasonal, but
production is continuous with limited capacity and lengthy changeover times. The
operations team uses LLamasoft technology to help plan the proper pre-production
and inventory placement schedules to counteract demand seasonality and facility
capacity constraints.
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A major manufacturer of industrial controls has over 10,000 SKU’s flowing
through their global supply chain. There is significant variation in size, weight,
lead-time, and demand for each of these items. The supply chain team has incorporated
LLamasoft’s Inventory & Capacity Modeling solution into their planning process,
determining the best safety and cycle stock settings for each item as well as the
proper location to stock each item throughout their global supply chain.
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