Oracle Corp. is bolstering its supply chain management offerings with a tool that helps companies maximize inventory planning.
The Oracle Inventory Optimization tool, which will announce on Monday, allows companies to evaluate their long-term inventory investment decisions by taking into consideration such factors as customer service needs, profit and strategic sourcing objectives, according to officials at Oracle, in Redwood Shores, Calif.
The Web-based tool sits on top of an existing supply chain planning module and augments its functionality. Inventory Optimization helps companies take advantage of their planning system by accounting for variables in demand and supply patterns across the supply chain – something most supply chain planning systems do not currently do, according to the officials.
A simulation capability evaluates revenue, sourcing and postponement strategies, which in the end aids companies in deciding whether or not to hold finished goods and determining where to store them.
Oracle Inventory Optimization is available now and can be implemented as a stand-alone application or as part of Oracles E-Business Suite.