CPG and Food & Beverage

Planning Functions
MEIO (Multi-Echelon Inventory Optimization) (enabling DDMRP concepts)

OMP Plus optimizes inventory 

Multi-Echelon Inventory Optimization (MEIO) calculates optimal safety stock values at every echelon of the supply chain for Make-To-Stock items. To do so, MEIO extends the single-echelon safety stock logic using desired service levels, observed demand patterns, forecast and lead times, as well as their variability. This allows a global optimization and enhances the robustness of production and deployment planning. The resulting inventory policy is graphically represented avoiding a black-box approach. Moreover, interactive simulations by the end user are very easy. As the inventory optimization function is seamlessly integrated with the other planning functions in OMP Plus, the validated inventory policy can be used directly in the DRP and/or production planning and delivers the inventory base line at the S&OP level. 

When applying Demand Driven MRP/DRP concepts within operational planning and S&OP, the MEIO safety stock results are an input for DDMRP buffers.

 

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