Why pick arbitrary Service Level Targets?

The Smart Forecaster

Pursuing best practices in demand planning,

forecasting and inventory optimization

Why pick arbitrary Service Level Targets? Learn how to select automatically the optimal Targets @scale minimizing total costs for your business.

There are unavoidable tradeoffs between inventory cost and item availability. The Smart Inventory Optimization (SIO) app calculates all the key metrics to expose those tradeoffs. You can try “what-if” experiments such as “What happens to shortage cost if we raise the reorder point from 5 to 10?”. Better yet, you can let SIO find the optimal operating policy, e.g., the lowest cost combination of reorder point and order quantity that guarantees a 95% service level.

Leave a Comment

Related Posts

Top Five Tips for New Demand Planners and Forecasters

Top Five Tips for New Demand Planners and Forecasters

Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field!

Recent Posts

  • Top Five Tips for New Demand Planners and ForecastersTop Five Tips for New Demand Planners and Forecasters
    Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field! […]
  • Dynamics Community Summit eventSmart Software to Present at Community Summit North America
    Smart Software's Channel Sales Director and Enterprise Solution Engineer, to present three sessions at this year’s Microsoft Dynamics Community Summit North America event in Orlando, FL. . […]

    Spare Parts Planning Webinar for Public Transit Agencies

    Spare Parts Planning in the Age of Covid: Problems and Solutions for Public Transit Agencies

    Covid has wreaked havoc on public transit. Plummeting ridership, reduced capacity, unprecedented losses in fare and tax revenue, along with added costs to keep buses and trains safe have resulted in massive transit system budget shortfalls. APTA reports that even with two rounds of emergency funding, public transit agencies will face a projected shortfall of $39.3 Billion through 2023.

    This webinar will address the need for transit agencies to reconsider traditional practices, find innovative ways to capture cost savings, and do so without jeopardizing service levels. Greg Hartunian, CEO of Smart Software, will discuss the particular challenge of spare parts planning, why traditional practices used today fail, and how inventory forecasting technology is being harnessed to optimize performance and drive significant financial return.

    Greg will highlight the experience of Smart Software’s transit customers, how they’ve generated bottom-line savings, what they are doing to prepare for the rebound, and share a technology demonstration using transit industry data. Please feel free to review the content below. We have provided case studies profiling the use of our technology within public transit and a software review from APICS Magazine.

    Transit Specific Content

     

    About Smart Software, Inc.

    Founded in 1981, Smart Software, Inc. is a leader in providing businesses with enterprise-wide demand forecasting, planning, and inventory optimization solutions.  Smart Software’s demand forecasting and inventory optimization solutions have helped thousands of users worldwide, including customers at mid-market enterprises and Fortune 500 companies, such as Disney, Otis Elevator, Hitachi, Siemens, Metro Transit, APS, and The American Red Cross.  Smart Inventory Planning & Optimization gives demand planners the tools to handle sales seasonality, promotions, new and aging products, multi-dimensional hierarchies, and intermittently demanded service parts and capital goods items.  It also provides inventory managers with accurate estimates of the optimal inventory and safety stock required to meet future orders and achieve desired service levels.  Smart Software is headquartered in Belmont, Massachusetts, and can be found on the World Wide Web at www.smartcorp.com.

     

    SmartForecasts and Smart IP&O have registered trademarks of Smart Software, Inc.  All other trademarks are their respective owners’ property.

    For more information, please contact Smart Software, Inc., Four Hill Road, Belmont, MA 02478.
    Phone: 1-800-SMART-99 (800-762-7899); FAX: 1-617-489-2748; E-mail: info@smartcorp.com

     

     

     

    What is the difference between Demand planning and Inventory optimization ?

    The Smart Forecaster

    Pursuing best practices in demand planning,

    forecasting and inventory optimization

    What is the difference between Demand planning and Inventory optimization ? 

    The Smart Demand Planning app (SDP) provides demand forecasts. The SDP forecasting engine is also the core of the Smart Inventory Optimization app (SIO), which stress-tests various inventory policies using a number of demand scenarios to find optimal inventory policy settings.

     

     

    Leave a Comment

    Related Posts

    Top Five Tips for New Demand Planners and Forecasters

    Top Five Tips for New Demand Planners and Forecasters

    Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field!

    Recent Posts

    • Top Five Tips for New Demand Planners and ForecastersTop Five Tips for New Demand Planners and Forecasters
      Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field! […]
    • Dynamics Community Summit eventSmart Software to Present at Community Summit North America
      Smart Software's Channel Sales Director and Enterprise Solution Engineer, to present three sessions at this year’s Microsoft Dynamics Community Summit North America event in Orlando, FL. . […]

      Automatic Forecasting for Time Series Demand Projections

      The Smart Forecaster

       Pursuing best practices in demand planning,

      forecasting and inventory optimization

      Improve Forecast Accuracy, Eliminate Excess Inventory, & Maximize Service Levels

      In this video tutorial Dr. Thomas Willemain, co–Founder and SVP Research at Smart Software, presents Automatic Forecasting for Time Series Demand Projections, a specialized algorithmic tournament to determine an appropriate time series model and estimate the parameters to compute the best forecasts methods. Automatic forecasts of large numbers of time series are frequently used in business, some have trend either up or down, and some have seasonality so they are cyclic, and each of those specific patterns requires a suitable technical approach, and an appropriate statistical forecasting method.  Tom explains how the tournament computes the best forecasts methods and works through a practical example.

      AUTOMATIC FORECASTING COMPLETE-VIDEO-2
      Leave a Comment

      RECENT POSTS

      Top Five Tips for New Demand Planners and Forecasters

      Top Five Tips for New Demand Planners and Forecasters

      Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field!

      Recent Posts

      • Top Five Tips for New Demand Planners and ForecastersTop Five Tips for New Demand Planners and Forecasters
        Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field! […]
      • Dynamics Community Summit eventSmart Software to Present at Community Summit North America
        Smart Software's Channel Sales Director and Enterprise Solution Engineer, to present three sessions at this year’s Microsoft Dynamics Community Summit North America event in Orlando, FL. . […]

        Forecast Using Leading Indicators – Regression Analysis:

        The Smart Forecaster

         Pursuing best practices in demand planning,

        forecasting and inventory optimization

        Improve Forecast Accuracy, Eliminate Excess Inventory, & Maximize Service Levels

        In this video tutorial Dr. Thomas Willemain, co–Founder and SVP Research at Smart Software, presents Regression Analysis, a specialized statistical modeling technique to identify and harness leading indicators to achieve more accurate forecasts.  Regression analysis is a statistical procedure to estimate the relationship between a response variable and one or more predictor variables. Housing starts, for example, might be a good leading indicator of vinyl siding demand.  Tom explains how and when to use regression analysis and works through a practical example.

        Forecasting Techniques for a more profitable business
        Leave a Comment

        RECENT POSTS

        Top Five Tips for New Demand Planners and Forecasters

        Top Five Tips for New Demand Planners and Forecasters

        Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field!

        Recent Posts

        • Top Five Tips for New Demand Planners and ForecastersTop Five Tips for New Demand Planners and Forecasters
          Good forecasting can make a big difference to your company’s performance, whether you are forecasting to support sales, marketing, production, inventory, or finance. This blog is aimed primarily at those fortunate individuals who are about to start this adventure. Welcome to the field! […]
        • Dynamics Community Summit eventSmart Software to Present at Community Summit North America
          Smart Software's Channel Sales Director and Enterprise Solution Engineer, to present three sessions at this year’s Microsoft Dynamics Community Summit North America event in Orlando, FL. . […]