Optimizing Inventory of Slow Moving Products Using SAS Optimization

Optimizing Inventory of Slow Moving Products Using SAS Optimization

Leveraging figure 1


Aiming to use data and science to set service-level goals, Advance Auto Parts engaged Core Compete to deliver a fully integrated service-level (Inventory) optimization system using SAS® Inventory Optimization and SAS/OR® software. The system has the ability to run inventory simulations and execute large-scale optimization for service-level goal optimization, leveraging the batch services on Amazon Web Services. A very large mixed integer optimization problem for inventory cost reduction is solved using the OPTMODEL procedure. The solution has the ability to recommend optimized service-level goals at the SKU/location level. System design integrates a simple Microsoft Excel user interface, data processing in Apache Hadoop, and optimization in SAS® in the cloud and the dashboards in SAS® Visual Analytics in order to review results. The end-to-end process flow for implementing simulations and optimization in large scale is discussed in this paper.


What You Will Learn in the Whitepaper


  • Leveraging Figure 2Inventory Optimization Problem
  • Solution Design
  • Technical Challenges and Resolutions
  • Business Challenges and Resolutions

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About Core Compete


DATA Black

Core Compete brings a unique blend of Domain, Analytics, and Technology expertise combined with Agile methodologies to deliver rapid value to our clients. Our experience with enterprise customers and strong partnerships with major technology vendors allows us to bring expertise and access critical resources that will accelerate our client’s success. We work with our clients to:

  • Identify opportunities that have a measurable business impact
  • Translate opportunities into analytics-based solutions
  • Operationalize them using technology for sustainable benefits
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