Current demand for the product
The system evaluates the current demand for goods at each store, which is replenished through the distribution centre.
LEAFIO's Inventory Optimization (MEIO) takes into account the unique characteristics of goods supply and generates highly accurate safety stock forecasts for managing inventory in both regional and central warehouses.
The system evaluates the current demand for goods at each store, which is replenished through the distribution centre.
Estimation of the forecast demand for goods is made for each store, which is replenished through the DC. The following is taken into account: the number of deliveries of goods by an external supplier to each store based on the DC delivery schedule, seasonality, promotional activities and other factors.
The current demand for the product at each level and the forecast demand taking into account seasonality, promotional activities and other factors, results in total demand for the product across the chain.
Calculation at the warehouse level occurs whether they are intermediate or wholesaler. In this case, the forecast demand is estimated to meet the needs of the warehouse(s) on the supply leg, taking into account all the necessary factors.
There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.
A final check of the order correctness so as not to miss anything.
The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.
The total demand of stores for the product on the delivery lead time is estimated.
In case of pick by line and pick by zero schemes, when the supplier's packaging can be unpacked at the warehouse and divided into smaller lots based on the lower distribution of goods from the DC to stores, the system can evaluate the order quantity and make a decision on the order based on the needs of stores in units of measurement of the DC multiplicity.
There is a general aggregation, order optimization, if it is necessary based on the supplier's conditions, the order is rounded up to the multiplicity factor.
A final check of the order correctness so as not to miss anything.
The order is generated and sent to the supplier automatically or accepted by the manager, depending on the settings selected for a particular supplier.
Potential inventory reduction at DC with increased availability in stores
Improvement of turnover in the entire chain
Reducing of excess inventory at DCs
The LEAFIO multi-echelon inventory optimization (MEIO) was designed to manage inventory at all levels of the supply chain: from a retail store, pharmacy, or supermarket to the chain of regional and central warehouses. Due to the tight connection in the elaborate multi-echelon forecasting algorithm, it is possible to accurately assess the current and future demand for goods on the lead time of an external supplier to the central warehouse concerning the supply schedule of a product to stores.