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- Postponement and risk pooling - Inventory Optimization uses postponement and risk pooling to help you determine where to hold inventory to guarantee a desired service level and at what stage of production to hold inventory. It can consider all your manufacturing plants, distribution centers, central warehouses, and even your suppliers and customers. In addition, it considers your bill of materials to calculate how much inventory to hold at the finished goods, subassembly, and raw material level. Oracle® Inventory Optimization solves the complex issue of balancing the time and cost you need to incur to get a product to a customer, without paying high costs to hold every product configuration close to your customer's locations.
- Mitigate supply chain risk by managing supply chain variability - To optimize your inventory investment, you need to account for all of the variability in your supply chain. Demand variability occurs due to seasonal factors, forecast errors, promotions, or new product introductions. Supply variability occurs due to lead-time uncertainties and supplier performance issues such as product quality and unreliable delivery. Capturing the variability in demand and supply enables you to obtain the precise determination of the inventory investment that is required to meet your customer service objectives, at the lowest possible cost, while remaining within your available inventory budget.
- Determine your most profitable channels, products, and customers - Typically, your customer service target is not a single number. You might have different goals for different products, customers, or sales channels. Oracle® Inventory Optimization helps determine the most profitable targets to strive for as well as optimize the use of your scarce resources to focus on achieving the most profitable product and sales mix. You can also define different service levels at various levels as every product, sales channel, and customer does not need to have the same service level.
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