Multi-Echelon Inventory Optimization

Multi-Echelon Inventory Optimization

What is Multi-Echelon Inventory Optimization?

Multi-echelon inventory optimization (MEO) simulates interactions between all your stocking locations to minimize inventory without compromising your target service levels. It identifies the most cost-effective stocking strategies by analyzing:

  • Service parts demand.
  • Service-level agreements.
  • Customer wait time limitations.
  • Space and capacity limitations.
  • Product uptime objectives.
  • Budgetary constraints.

How MEO Works

Service parts management
Service parts management

How MEO Enhances Your Supply Chain

Multi-echelon inventory optimization identifies the most cost-effective way to meet your service level goals, whether you're trying to maximize asset availability or achieve a 95% part fill rate. The capability empowers your planners to:

  • Adjust stocking levels to support new products or service models.
  • Ensure your supply chain adheres to customer wait time limitations.
  • Generate time-phased stock levels based on your install base.
  • Reduce inventory costs from 25% to 40%.

Advanced MEO

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PLM 讓我們的產品定義能在工程生產和支援部門間分享。幸好有 Windchill 的強大功能… 我們得以設計和改良功能,快速為 H160 [直升機] 計畫帶來價值。

- Airbus 直升機
 
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Ready to Learn More?

Contact a service parts management expert to discuss how multi-echelon inventory optimization can improve your service supply chain.