Optimizing service level targets based on profitability
With Minerva software, companies can create service-level targets that reflect the profitability of a product, location, and customer, allowing them to prioritize their investments for the most profitable SKUs and customers. The software optimizes item- and location-specific service levels to ensure global service-level targets are met. It simultaneously minimizes inventory cost and maximizes revenue. It does this by modeling related inventory requirements and revenue loss to set the most optimal inventory based on product and location granularity. As a result, companies can meet sales targets by improving customer service levels and generating more sales, reduce inventory by gaining insight into the network and supply chain, increase working capital, and increase planner efficiency by identifying forecast error accuracy to help maintain precise inventory levels.