AI innovation alert: Harness the power of AI to optimize allocation and replenishment
Infor is optimizing retail allocation and replenishment with leading artificial intelligence models
When it comes to the traditional inventory management challenges of allocation and replenishment, Infor thinks differently. At the end of the day, the goal is to get the right level of inventory to meet the upcoming demand of each SKU/store. So why are so many retailers managing siloed processes with competing need calculations?
With the help of an industry-leading, AI-based Mixed Integer Linear Programming (MILP) model, Infor has converged processes and science into one solution. This network flow optimization model maximizes profit while considering unlimited inputs of demand, current inventory, constraints, and the various supply chain costs of item ordering, shipping, receiving, warehousing, receiving in stores, and shelf stocking.
Gone are the days of:
- Pulling data and creating reports to outline inventory challenges
- Deciding whether to allocate or replenish fashion styles, seasonal basics, and basics
- Learning various allocation methods/parameters
- Learning various replenishment methods/parameters and when to apply them
- Manually allocating your worklist of purchase orders, ASNs, and warehouse inventory
- Manually assigning the methods and parameters to combinations of style/color/SKU/locations
- Setting point-in-time parameters with no seasonal dating
- Manually updating replenishment parameters throughout the year as the months/seasons change
- Manually creating and tracking bulk POs
- Working at higher levels like store groups, product groups, etc. when there’s not enough time or system capability to treat each style/color/SKU/location individually
With Infor’s network flow optimization MILP model, the typical workflow will now consist of:
- Managing the business through alerts
- Automating allocations of purchase orders, bulk POs, ASNs, inventory, etc. for fashion, seasonal, basics, as well as in-season replenishment
- Implementing a single model that calculates the most profitable suggested inventory quantities for each unique style/color/size/location
- Using the model to consider every supply chain input and evaluate profit through revenue/costs
- Evaluating suggested order/transfer quantities across the entire product lifecycle
- Freeing up time to conduct value-add activities, like evaluating opportunities that will grow business
With Infor’s network flow optimization MILP model, retailers can deliver to meet demand with greatest profit, in the most productive manner possible.