Inventory Optimization

Baxter Planning Systems specializes in the service supply chain, uniquely focusing on Total Cost Optimization to calculate target inventory levels at the best cost. This is done by balancing inventory cost (the cost of positioning material) against stockout cost (the cost of a not having material available when and where demand occurs).

Modeling inventory costs and stockout costs accurately is key to fully realizing the benefits of Total Cost Optimization. As a best practice, Baxter recommends that customers have at least 98% of their target stock levels unconstrained and calculated based on total cost optimization.