Supply Simulation, Process Optimization, Lean Design
 
 S e r v i c e s

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Service Level Agreements and Inventory Policy Tested by OpStat

 

 
Do you know the optimal level of safety stock and cycle stock for your supply chain process? 
  • Our statistical safety stock equations include demand variability, forecast accuracy and supply lead time and variability.
  • Our inventory optimization models perform a service level calculation based on representative statistical distributions for supply and demand.  Allows service level agreements to be tested before finalizing.

This example depicts the safety stock required as demand variability and lead time increase.

View a 45 second video clip of a safety stock & replenishment simulation. 

 

 

 

 

 
Coefficient of Variation (CofV) for weekly demand, equal to standard deviation / mean demand, is an indicator of comparative variability.  


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Copyright 2005 OpStat Group Inc. All rights reserved.  Last modified: 06/21/2011