Multi-Echelon Inventory Optimization (MEIO)

Holistic Optimization Of Inventory Across Complex, Multi-Tiered Supply Chains

Optimizing inventory 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 inventory and customer service becomes almost daunting.

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

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 optimizes when the supply chain network isn’t simply single-tier.

We Can Help You

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

Features + Functions

• Leverage a single solution, single deployment, and single solve for the entire network
• Optimize cross-tier inventory strategies to synchronize inventory needs across each echelon in your network
• Generate order projections for future inventory 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