Inventory Optimization
Find it: Management → Parts Management → Optimization (Analytics group).
Sound familiar?
- "We stock 400 SKUs and still stock out on the one that matters."
- "How much safety stock is enough without tying up cash?"
- "Which parts actually deserve the shelf space?"
Min/max levels set by gut feeling fail in both directions at once.
The Problem
Static stock rules ignore how parts are actually consumed. High-value parts get the same treatment as consumables. Erratic demand hides behind steady averages. The result is familiar: cash locked in slow movers, and emergency purchases for the parts that genuinely matter.
What OpexMX Inventory Optimization Does
Replaces static stock rules with classification and math based on your own consumption history.
ABC/XYZ Classification
- A/B/C: rank parts by consumption value, so effort follows money
- X/Y/Z: classify demand as steady, variable, or erratic, so volatile parts get the buffer they need
- Combined view: an AX part and a CZ part deserve different policies; the classification shows which is which
Reorder Points at a Service Level
Set a service level target (95% by default) and OpexMX calculates the reorder point per part from lead time and average daily demand. Stock drops to that point, the reorder signal fires.
Safety Stock
Safety stock absorbs demand spikes and supplier delays, sized from demand variability and lead time, not from a rounding rule. Parts that fall below safety stock appear in a "reorder immediately" list, so the urgent list is computed, not remembered.
How It Works
- Run ABC/XYZ classification to score your catalog.
- Pick a service level for the reorder point calculation.
- Calculate reorder points and review the suggested values.
- Work the below-safety-stock list before it becomes downtime.
Who Uses This?
| Role | What They Care About |
|---|---|
| Storeroom | What to reorder, and when |
| Finance | Working capital out of slow movers |
| Maintenance planning | Critical parts never at zero |
| Procurement | Order quantities with a defensible basis |
Pro Tips
- Recalculate after big consumption shifts, like a new production line.
- Treat A-class parts to tighter review cycles; C-class can run on autopilot.
- A high safety stock on a Z-class part usually means a supplier problem, not a math problem.
- Pair with Supplier Performance to shorten the lead times driving your reorder points.
Integrations
- Parts Management: works on the same part catalog and stock levels
- Supplier Performance: actual lead times feed the reorder math
- Purchase Requests: reorder signals become procurement intake