Reduced inventory costs through demand Planning & Inventory Optimization

About the client

A Global CPG Company based out of US

Problems:

• Accumulation at a large number of Distribution points leading to high inventory level concerning sales
• Need to minimize inventory holding at SKU level & distribution costs
• Maximize demand fulfillment rates and minimize stock-out situations at retail outlets

Solution:

• Innover developed statistical models (time series, multi-level/hierarchical models, etc.) for demand Planning & Inventory Optimization, future sales predictions for all SKUs at retailer levels by analyzing past sales, warehouse SKUs and order history
• Identified similar products for newly introduced SKUs from consumer positioning perspective and developed forecast models to predict launch sales
• Integrated sales forecasts with warehouse SKU information, order information and business inputs on expected sales spikes to arrive at orders for all SKUs, at retailer levels
• Solved multi-objective optimization problem of inventory management by applying genetic algorithm-driven Particle Swarm Optimization in an Agent-Based Modeling (ABM) framework