Multi-Echelon Inventory Optimization.
I· Integrated
From → To
From the planning pain to multi-echelon inventory optimization.
What it is
Multi-Echelon Inventory Optimization (MEIO) determines the optimal stock at each echelon — raw, Work-in-Process (WIP), finished, regional, customer-facing — as a coupled problem against service and working-capital targets. Distributions flow through the network, not point estimates.
Same service level on materially less working capital, or materially higher service on the same working capital.
Value
Same service level on materially less working capital, or materially higher service on the same working capital. The trade-off is explicit and CFO-defensible.
What ships in this capability
- 01Coupled multi-echelon stochastic optimization
- 02Per-echelon service target
- 03Working-capital constraint as first-class input