Multi-Echelon Inventory Optimization (MEIO)

Holistic Optimisation of Stock Across Complex, Multi-Tiered Supply Chains

Optimising stock in a single facility can be challenging enough. Now introduce multiple locations, multiple tiers in your network and multiple flow paths for certain products, and the number of variables that can impact stock and customer service becomes almost daunting.

Manhattan’s Multi-Echelon Inventory Optimization (MEIO) solution takes a holistic approach to modelling stock and end-customer service level objectives to ensure you’re achieving the greatest possible returns on all your stock.

Manhattan’s Multi-Echelon capabilities are deeply ingrained in the DNA of our Replenishment solution. Ours is not a separate solution; it’s an inherent part of how Replenishment optimises when the supply chain network isn’t simply single-tier.

We Can Help You

• Achieve the greatest possible end-customer service objectives with the smallest total network stock level
• Improve stock turnover, which frees up working capital
• Align stock management policy decisions across all tiers of your supply chain
• Automate stock responses in one tier when demand, supply or stock management strategy changes in another tier
• Reduce the impact of the bullwhip effect on network stock levels

Features + Functions

• Take advantage of a single solution and single deployment for the entire network
• Optimise cross-tier stock management strategies to synchronise stock needs across each echelon in your network
• Generate order projections for future stock order activity, which drives upper echelon demand
• Update all order projections in real time throughout the business day
• Allocate constrained supply when the upper echelon is short on stock
• Consider supplier lead-time risk factors in lower echelon replenishment strategy