Inventory Optimization Tool


Ultriva’s patent pending inventory optimization tool uncovers opportunities to reduce inventory and identify parts for transition kanban replenishment. Also, simulate the affect of changes in supplier lead time, lot size, and safety stock.

  • Projects can be shared with other planners for viewing purposes
  • Projects can be categorized

Simulate consumption and compute on-hand inventory for each day. The graphs show:

  • Consumption volume (blue line) for each day of the interval in the data load
  • Actual on-hand inventory (red line), for each day based on current replenishment methodology
  • Projected on-hand inventory (Green line) for each day based on if you used Kanban replenishment methodology

For historical data it identifies the potential inventory savings while for forecast it identifies the part shortages.

  • The gap between the RED and Green lines is the potential savings
  • Normally the lower the S/X (variability of consumption) the larger the gap

Simulation highlights the potential weakness in current replenishment methodologies.

  • Typically the Min-Max methodologies used by ERP systems with reorder points is the primary cause of excess inventory and material shortages
  • Since reorder points are not maintained they tend to go out of sync leading to higher inventory on-hand

Highlight the gap between consumption and on hand inventory.

  • Visualize and quantify the variability of your actual consumption
  • Provides visual clue on the amount of inventory you are carrying on-hand
  • Provides visual clue on the amount of safety stock you are carrying
  • Quickly determine which parts are good candidates for kanban replenishment based on potential savings and (S/X, Std Deviation/Mean) variability of consumption

See estimated inventory savings for your project, then drill down to savings by part or by supplier.

  • Load your data, run the simulation, see your savings
  • Compute safety stock and your Kanban loop sizing
  • Export your kanban variables to Ultriva’s Collaborative Supply Portal to setup kanban items and then realize the savings