【正文】 mize strategies to decide—what to make, what to buy and from whom, what inventories to carry, where, in what form and how much—across the supply chain. It enables customers to learn and continuously improve inventory management policies and processes, strategic analysis and optimization. Productoriented industry can install i2 Inventory Optimization and develop supply chain. Through this, the pany can reduce inventory levels and overall logistics costs. It can also get higher service level performance, greater customer satisfaction, improved asset utilization, accelerated inventory turns, better product availability, reduced risk, and more precise and prehensive supply chain visibility.Oracle Inventory OptimizationOracle Inventory Optimization considers the demand, supply, constraints and variability in extended supply chain to optimize strategic inventory investment decisions. It allows retailers to provide higher service levels to customers at a lower total cost. Oracle Inventory Optimization is part of the Oracle eBusiness Suite, an integrated set of applications that are engineered to work Inventory Optimization provides solutions when demand and supply are in ambiguity. It provides graphic representation of the plan. It calculates cost and risk.MRO Software MRO Software (now a part of IBM39。 ?Plan by assortment。 ?Select the right systems。 ?Revamp the organizational structure。 and? New supplier39。? Domestic vs. off shore。 the lower focuses on the execution of inventory plans with their success criteria, continuous improvement methodology and business continuity plans. The inventory indicators are: total inventory value, availability of spares, days of inventory, cost of inventory, cost saving and cash saving output expenditure and quality improvement. The hexagon model bines the elements of the people involved in managing inventory with operational excellence (Figur2). Managing inventory with operational excellence was achieved by reducing the number of employees in the material department, changing the mix of people skills such as introducing engineering into the department structure and reducing the cost of ownership of the material department to the operation that it supports. Normally, this is implemented with reduction in headcount of material department, having less people with engineering skills in the department. Operation results include, improvement in raw material supply line quality indicators, petitive days of inventory and improved and stabilized spares availability. And the financial results include, increase in cost savings and reduced cost of inventory. It can be established by outsourcing some of the inventory functions as required. The level of efficiency of the inventory managed can be measured to a specific risk level, changing requirements or changes in the environment.JustInTime (JIT)Justintime (JIT) inventory system is a concept developed by the Japanese, wherein, the suppliers deliver the materials to the factory JIT for their processing, eliminating the need for storage and retrieval. The rate of output and the rate of supply of inputs are synchronized, to manage a zero inventory. The main benefits of JIT are: set up times are significantly reduced in the factory, the flow of goods from warehouse to shelves improves, employees who possess multiple skills are utilized more efficiently, better consistency of scheduling and consistency of employee work hours, increased emphasis on supplier relationships and continuous round the clock supplies keeping workers productive and businesses focused on turnover. And though a JIT system might even be a necessity, given the inventory demands of certain business types, its many advantages are realized only when some significant risks like delays in movement of goods over long distances are mitigated.VendorManaged Inventory (VMI)VendorManaged Inventory (VMI) is a planning and management system in which the vendor is responsible for maintaining the customer’s inventory levels. VMI is defined as a process or mechanism where the supplier creates the purchase orders based on the demand information. VMI is a bination of emerce, software and people. It has resulted in the dramatic reduction of inventory across the supply chain. VMI is categorized in the real world as collaboration, automation and cost transference. The main objectives of VMI are better, cheaper and faster transactions. In order to establish the VMI process, management mitment, data synchronization, setting up agreements, data exchange, ordering, invoice matching and measurement have to be undertaken. The benefits of VMI to an organization are reduction in inventory besides reduction of stockouts and increase in customer satisfaction. Accurate information which is required for optimizing the supply chain is facilitated by efficient transfer of information. The concept of VMI would be successful only when there is trust between the organization and its suppliers as all the demand information is available to the suppliers which can be revealed to the petitors. VMI optimizes inventory in supply chain and reduces stockouts by proper planning and centralized forecastin