Supply Chain News Bites - Only from SCDigest
 

-September 5, 2008

 
 

Supply Chain Graphic of the Week - Inventory Optimization versus Traditional Supply Chain Planning

 
  Supporters Says Newer Technology Takes a More Holistic Approach  
 

By SCDigest Editorial Staff

 
 

How does the relatively new software category of Inventory Optimization differ from traditional supply chain planning tools?

In general, vendors and supporters of Inventory Optimization technology say these tools look to simultaneously optimize inventory targets across multiple levels of the supply chain, while traditional supply chain planning tools often look more to optimize inventory at individual levels without always considering inventory in other "echelons."

The table below was taken from the recent Supply Chain Digest Letter on Inventory Optimization (See Inventory Optimization Resources Page.)

Inventory Optimization versus Traditional Planning

Source: SCDigest Letter

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