Vivacadena - Predictive Buffer Management

Implement Predictive Buffer Management

Both an effective response to actual market demand and the implementation of Integrated Measurements require a Norm Inventory per product per location per day:

An effective response requires an adjustment of the daily inventory level based on actual fluctuation of demand
The calculation of the integrated measurements is a comparison of the required inventory level (the norm), the actual inventory level and its translation into lost cash for the company as a whole

Therefore our automated methodology to calculate required inventory levels per SKU, per location, per day on the basis of actual fluctuations of demand is an essential building block of the solution
Usually the number of SKU-Location combinations is too high to be managed manually
Predictive Buffer Management (PBM) is an algorithm developed by Vivacadena to adjust Inventory Norms on a daily basis automatically and continuously through the analysis of actual fluctuations of sales and supply
Predictive Buffer Management (PBM) is specifically designed for longer lead times and higher levels of predictability of demand (mainly replenishment of DC’s based on aggregated sales data)
It takes time series analysis, seasonality and disruption of the supply cycle into account. It is a self-learning algorithm that adjusts pipeline inventory on the basis of the ongoing analysis of sales patterns and comparison with previous projections and decisions.
We have created a set of Standard Reports which automaticaly escalate over and understock to the users, show outcomes of PBM calculations and report the Suggested Order Quantity (SOQ, report can be used as an automatic order generator for the suppliers)
Our system can switch automatically between the two algorithms (Predictive or Dynamic Buffer Management) based on predetermined decision making rules.

If you are interested in reviewing our demo site you can send us a request for a demo login.