What does Optimization Look Like?

Optimized inventory doesn’t necessarily mean the lowest levels. In fact, sometimes the result of inventory optimization is to increase levels. The ultimate determining factor is to ensure that production is always running, or conversely, never stopped due to lack of items needed. The target is to find the precise balance of inventory, in this case of consumable items, that represents the greatest efficiency and best overall inventory metrics.

Who’s Got The Time?

Until now, to do this requires an experienced individual, or team of individuals. The equation gets more overwhelming the larger the total number of items to manage, when it simply becomes too time consuming to accomplish, so many companies operate day to day with inefficiencies in their levels. The result is often too few of the items critical to production, and too many (relatively) of the items not as important, that results in two problems: slowed or stopped production and poor cost allocation.

What is Artificial Intelligence

To take a fundamental look at AI, it is the ability of a computer or digitally-controlled device to perform tasks commonly associated with intelligent beings, IE: humans. These include the ability to reason, discover meaning, generalize, or learn from past experience. AI offers four distinct opportunities for greater productivity:

• Alleviate human workload including the burden of repetitive activity
• Speed, as in processing speed vs thinking speed, that shortens the time needed to complete tasks
• True multitasking, performing multiple different functions simultaneously
• Accuracy – 100% repeatable scientific precision, 0% human error

Applying AI To Industry

Given that this type of reconciliation is, or was, performed by a skilled worker or team, and that the tasks are daunting, especially in large numbers, CRIBWISE management concentrated their efforts to leverage data and the power of the application.  The result is Stock Optimization – a next level efficiency feature within the CRIBWISE suite of solutions. As a prime example of Artificial Intelligence used in tool management, Stock Optimization is even more accurate than specialized and highly-skilled inventory and purchasing personnel. With only initial input of parameters, the new feature will teach itself how to set optimal levels for each item monitored in the system, whether it’s 10 or 10,000. Stock Optimization uses advanced algorithms to pinpoint exact levels of inventory items, minimizing cost while ensuring maximum production, and in a very small fraction time, doing what was simply not humanly possible.