【正文】 ness 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。 ?Create coverage reports。 ?Plan by assortment。 ?Adhere to exception reporting。 ?Select the right systems。 ?Enforce vendor pliance。 ?Revamp the organizational structure。 cost. Companies can benefit from inventory optimization, provided they control their supply chain processes and the plexity of supply chain. In case the supply chain is very plex, besides inventory optimization, network design has to be used to reap the benefits fully. This paper covers various inventory models that are available and then describes the technologies like Radio Frequency Identification (RFID) and networking used for the optimization of inventory. The paper also describes the software solutions available for achieving the same. It concludes by giving a few examples where inventory optimization has been successfully implemented.Inventory ModelsHexagon ModelThe hexagon model was developed due to the need to structure daytoday work, reduce headcount and other inventory costs and improve customer the first phase, operation strategies were established in alignment with internal customers. Later, continuous improvement plans and business continuity plans were added. The five strategies used were: forecasting future consumption,setting financial targets to minimize inventory costs, preparing daily reports to monitor inventory operational performance,studying critical success indicators to track the acplishments, to form inventory strategic objectives and inventory health and operating strategies. The hexagon model is a bination of two triangular structures (Figure 1). The upper triangle focuses on the soft management of human resources, customer orientation and supplier relations。 and? New supplier39。附錄AInventory Optimization in Supply Chain:Zero Inventory ApproachKanaka B*Managing optimal inventory in the supply chain is critical for an enterprise. The ability to increase inventory turns and the use of best inventory practices will reduce inventory costs across the supply chain. Moving towards zero inventory will result in effective inventory management in the business process. Inventory Optimization Solutions can be implemented easily using inventory optimization software. With Radio Frequency Identification (RFID) technology, inventory can be updated in real time without product movement, scanning or human involvement. Companies have to adopt best practices to optimize operational processes and lower their cost structure through inventory strategies.IntroductionWith supply chain planning and latest software, panies are managing their inventory in the best possible manner, keeping inventory holdings to the minimum without sacrificing the customer service needs. The zero inventory concept has been around since the 1980s. It tries to reduce inventory to a minimum and enhances profit margins by reducing the need for warehousing and expenses related to concept of a supply chain is to have items flowing from one stage of supply to the next, both within the business and outside, in a seamless fashion. Any stock in the system is caused by either delay between the processes (demand, distribution, transfer, recording and production) or by the variation in theflow. Eliminating/reducing stock can be achieved by: linking processes, making the same throughput rate on processes, locating processes near each other and coordinating flows. Recent advanced software has made zero inventory strategy executable. Inventory optimization is an emerging practical approach to balancing investment and servicelevel goals over a very large assortment of StockKeeping Units (SKUs). In contrast to traditional ‘oneatatime’ marginal stock level setting, inventory optimization simultaneously determines all SKU stock levels to fulfill total service and investment constraints or objectives. Inventory optimization techniques provide a new logic to drive the system with information systems. To effectively manage inventory, businesses must also optimize the costs of buying, holding, producing, moving and selling inventory. The objective of inventory optimization is to sustain minimal levels of inventory while providing the maximum possible levels of service. Supply Chain Design and Optimization (SCDO) is an inventory optimization solution which helps panies satisfy customer demands while balancing limitations on supply and the need for operational efficiency. Inventory optimization focuses on modeling uncertainty and variability and minimizing the risks they impose on the supply chain. Inventory optimization can help resolve total supply chain cost options like:? Inhouse manufacturing vs. contract manufacturing。? Domestic vs. off shore。s cost vs. current suppliers39。 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 v