It is critical for manufacturers of all kinds to have a clear and constant understanding of the gaps between consumption and on-hand inventory. This requirement is complicated because of three factors:
Ultriva’s Inventory Optimization Tool (IOT) uses powerful simulation capabilities that uncover opportunities to reduce inventory expense. The IOT system makes the critical determination of which parts and materials handled by the supply chain are suitable for transition to Kanban-based replenishment.
IOT simulates consumption and on-hand inventory for each day in a pre-specified interval of time. For historical data, IOT identifies realized and missed inventory savings, while simulating future part shortages based on activity assumptions worthy of cost-saving exploration. Ultriva’s IOT simulation capabilities highlight the potential weaknesses in current replenishment methodologies.
Then drill down to savings by part or by supplier.
The IOT will systematically identify opportunities for inventory reduction as a result of transitioning from MRP-Forecast to Demand-Driven Pull.
IOT simulates the impacts on supplier performance such as changes in supplier lead-time, lot size, and safety stock. IOT simulations are shared with other managers and categorized for planning and archival purposes.
IOT quickly determines which parts are good candidates for Kanban replenishment based on potential savings and variability of consumption. The system estimates these potential inventory savings at an aggregate level and then drills down to identify savings by part or supplier.
IOT delivers up-to-the-minute, accurate information about the following key measures: