Until recently, retailers have had very few tools to effectively align inventory targets with costs and service levels in an effort to "right size" their inventory. In many cases, retailers still rely on manually intensive, spreadsheet-based replenishment techniques, yet inventory is the most important asset they own...
Retailers today have thousands of items in hundreds of stores, provided by countless suppliers, and distributed through dozens of warehouses via thousands of purchase orders. Each item has its own unique demand pattern for each location, cost, vendor lead-time, pack configuration, transportation cost, and more.
It is important to accurately manage these numerous variables to achieve inventory balance. Oracle Retail Replenishment Optimization balances all variables and constraints to create the optimum inventory balance to set and achieve service level goals while optimally managing inventory. The system examines all of the possible tradeoffs involved in managing inventory replenishment and the impact they have on the business, and then makes the best recommendation.
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