Want to Learn About Multi-Echelon Optimization? Here's How



Service parts planners often stock inventory based on each location’s target fill rate. Applying this approach can quickly lead to excess inventory with little effect on a customer’s asset availability rate.

A supply chain is a powerful system. Therefore, wouldn’t it make sense to utilize the relationships between stocking locations to minimize inventory costs while ensuring parts are available when and where they’re needed?

This is the driving principle behind multi-echelon optimization (MEO), a service parts management function within Servigistics. PTC’s Vinod Arekar and Steven Caldwell recently hosted a 30-minute webinar describing the functionality behind MEO, covering: 

  • How MEO plans inventory across multiple levels, locations and costs.
  • Examples of MEO at work in Philips Healthcare, Pratt & Whitney, and Hewlett Packard.
  • Metso’s multimillion-Euro savings as a result of utilizing MEO.

You can watch the replay of the webinar below:

Arekar serves as a PTC Fellow, Global Services, and played a monumental role in developing Servigistics’ MEO algorithms. He is regarded as one of the most reputable service parts thinkers in the industry. Right now, he leads strategic initiatives within PTC’s Servigistics Business Unit, and has implemented service parts management solutions in the A&D, Healthcare, and HiTech Sectors.

Caldwell is Vice President of Solution Management at PTC, and oversees the company’s Service Parts Management, Service Parts Pricing, and Service Network Management solutions. He has been with Servigistics since 2002, championing key development initiatives associated with the product.