APPLICATIONS

Probabilistic MEIO by Wahupa

New math unlocks new inventory performance.

Optimize inventory, enhance service and lower costs

History, averages and standard deviations have been used for years to calculate cycle and safety stocks. Patterns were predictable. But they aren’t anymore. Volatility is driving uncertainty. Companies are overcorrecting by carrying more inventory than needed. Driving up costs and creating waste.

You need new math to quantify the uncertainty. Kinaxis Probabilistic Multi-Echelon Inventory Optimization (MEIO) by Wahupa quantifies the uncertainty and helps you trade excess inventory for free cash flow without compromising your commitment to service. So you can reach your strategic, financial and service goals while removing waste from your supply chain.

Manage underperforming service models

Modern supply chain networks contain complex constraints that are not modeled in existing planning systems. Leverage a more precise way to determine true inventory requirements across all product types, including slow moving parts.

Differentiated service levels

All products do not need to be not stocked equally. Determine the optimal service level for individual products resulting in achieving an overall service level without excess inventory.

The right tool for the right system

Apply the right levers to maximize the potential of your inventory. Mix. Staging. Postponement. Different tools for different industries for optimal results.

Forecast the unforecastable

Manage a non-normal distribution to determine the actual demand to make predictions, which allows for previously “unforecastable” long-tail items to contribute maximum margin.

Competing objectives

Balance service objectives against competing business goals through optimization to determine the trade-off between inventory and service level while considering demand, lead time and supply parameters to create a unique curve for each product and location to determine the best mix to achieve a desired service level.

Implement now, fast ROI

Achieving the right inventory mix across all products frees up a significant amount of working capital quickly providing a prompt return on investment.

About Wahupa

Wahupa is on the leading edge of modeling uncertainty that is present in every forecast, plan, and schedule. Where most existing planning offerings on the market fight uncertainty, we embrace it! The result is a dramatic increase in stability, measured as reductions in costs from waste, expiry and expediting, increases in sales and margins, and getting out of fire-fighting mode. For more information, please visit www.wahupa.com.

Contact Kinaxis today to see the possibilities

Learn more about Kinaxis Probabilistic MEIO by Wahupa.

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