Systems Dynamics Modeling: Inventory and Network Optimization
Strategic placement of inventory enables the supply chain to more effectively respond to demand fluctuations while minimizing lead time and working capital invested in the supply chain.
OEIS researchers can utilize proven modeling techniques using a variety of parameters to analyze strategic inventory levels at multiple tiers in the supply chain. These models can then be used in supply chain configuration in order to develop push-pull boundaries within the supply chain, define optimum inventory levels at multiple tiers, reduce total supply chain WIP and improve overall supply chain performance.
Demonstrated benefits of optimizing inventory levels and positions in the extended supply chain include:
- Enables the supply chain to be more adaptive and responsive
- Increases recovery rates from sudden shifts in demand
- Reduces the amount of working capital invested to achieve desired service times
- Efficiently mitigates risks of forecasting errors