Multi-Echelon Inventory Optimization (MEIO) Application

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MEIO Application

Multi-echelon inventory optimization (MEIO) balances inventories across the entire distribution network, taking into account the interdependencies between echelons. Organizations that go beyond single-echelon inventory optimization (IO) offer highly competitive service levels and see a reduction in – or elimination of – stockouts.

Global competition, offshoring, transport costs, commodity prices, and fickle consumer demand conspire to inflate inventory levels and costs. Not just carrying costs from tied up working capital, but lost sales from stockouts, or write-offs and price mark-downs due to overstocks and obsolescence. The solution starts with exceptional forecast accuracy, and improves markedly with exceptional optimization modeling, process automation, and cloud-based collaboration.

Multi-echelon inventory optimization is an area of operations organizations have long struggled with, trying to achieve the best strategy to manage their supply chain.  Ineffective inventory management can be problematic and costly for organizations. Implementing a robust inventory management method, such as Vanguard Predictive Planning™, is critical for organizations to successfully manage the flow of goods and services throughout their supply chain.  Vanguard’s multi-echelon inventory optimization (MEIO) solution balances inventories across the entire distribution network, considering the interdependencies between echelons.  Organizations that go beyond single-echelon inventory optimization offer highly competitive service levels and see a reduction in – or elimination of – stockouts.

Features of MEIO include:

  • Integrated demand planning and MEIO in a single screen
  • Lead time analysis and variance
  • Prescriptive analytics based order optimization
  • What-if modeling
  • Automated multi-warehouse rebalancing
  • Visualization of order scheduling
  • Dynamic financial impact analysis
  • Spare parts replenishment optimization

Download our solutions brochure on MEIO application to learn more about Vanguard’s true lead time calculations, BOM and BOD support, and inventory strategy automation.

For further reading, check out some of our other brochures on the solutions that Vanguard Software offers: Vanguard Predictive Planning™, Sales and Operations Planning, Demand Planning and Forecasting, and Unlimited Scenario Planning.