Multi-echelon takes a bird’s eye view of the entire supply chain and considers the entire network as a single unit. Additional inventory reductions of 15 to 20 per cent can be achieved through strategic allocation of inventories across the network.
This innovative concept not only creates network-wide transparency, but also helps to ensure customer satisfaction by maintaining high availability while at the same time minimizing inventory levels.
Here is a video from Inform Software explaining in detail what is Multi-Echelon Inventory Optimization.
