The Theoretical Optimal Inventory report is one of the most interesting reports in Mars. This report shows both the maximum possible turns and the optimal inventory level for each SKU reported on. These numbers are based on the forecast, order frequency, and volatility (MAD) of each SKU based on historical performance and current demand.
The normal filtering options are available (Super Vendor, Vendor, Location, Group 1, Group 2, Item) for the report as well as options to include non-stock items (X-Items)
The very end of the report shows the current inventory value and the optimal value possible. Keep in mind that this is a theoretical report assuming continuation of historical performance and consistent ordering and delivery of product. But even with these caveats, the gap between the current value and optimal value will give an indication if there is substantial room for improvement of inventory levels.
This improvement can be realized by adjusting the many configuration options within Mars that can fine tune demand forecast performance. NBDS offers consulting services and training to help better understand how to get optimum performance from the system.
