Economic Order Manager (EOM)

Economic Order Manager (EOM) is a decision support tool for management and purchasing agents that performs inventory simulation, including ABC analysis and performance monitoring. Planners have the ability to adjust inventory parameters that calculate the total cost of ordering and holding inventory. EOM is integrated with Demand Manager (DM) to set customer service levels and Requirements Planner (RP) to optimize purchase from vendors and minimize inventory carrying expenses.

Back-to-Basics

EOM is effective at monitoring inventory performance even in the absence of EOQ based order policies. EOM continually monitors actual inventory turns against optimal turns. The results reinforce business basics related to inventory—control and measure the effectiveness of current order policies. Most importantly, organizations gain insight into required inventory levels, thereby highlighting critical adjustments.

Economic Order Manager Features

RockySoft’s Economic Order Manager places inventory control in the hands of the buyer, while still delivering service that exceeds even the most demanding customers’ expectations. EOM delicately blends automation with the ability to manipulate key variables to determine the inventory level that is appropriate for your business.

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Benefits

  • Enjoy the efficiency of computational automation with the ability to manipulate key variables that determine the inventory level appropriate for your business
  • Increased fill rates on each class of inventory
  • Inventory levels set to meet desired service levels and product availability objectives
  • Reduced exposure to obsolete inventory
  • Decrease in lost sales
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Advantages

  • Assign a target customer service level to each inventory classification
  • Save time by automatically calculating and sending Economic Order Quantities at the SKU/DC level to Requirements Planner for planning
  • Utilize multidimensional weighting to more appropriately determine each product’s contribution with ABC analysis (hit frequency, sales, COGs, profit, quantity sold, GMROI, and more)
  • Maintain product classing relevance by allowing EOM to automatically compute and update the inventory rank for each SKU—daily, weekly, or monthly
  • Drive process improvement using the tracking and performance metrics provided in EOM
  • Determine which inventory positions are in excess using EOM metrics
  • Determine how each of your inventory classes is performing
  • Simulate service level and classification changes to determine overall inventory investment

Product Literature

Economic Order Manager (PDF)

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