Inventory Optimisation

Balancing supply and demand

The Problem

Matching inventory supply to customer demand is one of the greatest challenges facing any business.

How do you find optimal stock levels that protect against unnecessary wastage, mitigate the risk of selling out early and ultimately, maximise long-run profitability?

The Solution

Our inventory optimiser finds the correct amount of stock to order at any given time, by forecasting demand and building in the costs associated with stock wastage, storage and lost revenue due to out-of-stock.

We model stochastic effects to account for variability in demand and ensure the model can be tested against various scenarios to assess robustness.

The optimiser outputs recommendations for future orders which can be integrated into inventory management software or output to a dashboard.

Inputs

Historical sales data
Historical inventory / purchase data
Pricing data

Deliverables

1. A forecast model that predicts future demand for each product line

2. A optimisation algorithm that uses the output from the demand forecaster to find the optimal point at which stock level should be set to maximise future expected profit

3. Integration into existing inventory management software or dashboards

Outcome

Your inventory will always be set at the correct level for the incoming demand, stock wastage will be kept to a minimum and customers will be less likely to find in-demand items being out-of-stock.

More information