Vivacadena - Dynamic Buffer Management

Implement Dynamic 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
Dynamic Buffer Management (DBM) 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 (mainly store replenishment per SKU)
Dynamic Buffer Management (DBM) is specifically designed for shorter lead times and low predictability of demand
We have created a set of Standard Reports which automatically escalate over and understock to the users
Our system can switch automatically between the two algorithms (Dynamic or Predictive 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.