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

Department of the Navy Logo

Hewlett Packard Enterprise Logo

Pratt and Whitney Logo

Metso Logo

Boeing Logo

Qantas Logo

We now have a dynamic and agile supply chain. If there are changes in the market, whether it's going up or down, our supply chain is able to adapt quickly to those changes so we can keep and gain business momentum and ensure world-class customer service.

– Sébastien Bergé, Manager of Services, Metso
 
Read Metso's Story

Ready to Learn More?

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

;