INTELLITWIN APPLICATIONS

Optimal Order Quantities

Optimise logistics and storage cost using IntelliTwin

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Determining the right economic order quantity (EOQ) is a critical challenge in supply chain management. The adago EOQ Optimizer automates the calculation of optimal order quantities and continuously updates recommendations based on changing conditions.

Critical Challenges

The Three Challenges of Economic Order Quantity Management

Balancing holding costs, ordering costs, and dynamic market conditions in modern supply chains

High Holding Costs vs Frequent Replenishment

Order too much and face high storage costs, insurance, and obsolescence risk. Order too little and incur frequent transportation costs and stockout risks.

Finding the right balance between holding costs and ordering costs is critical for profitability and supply chain efficiency.

Dynamic Business Conditions

Seasonal fluctuations, supplier price changes, and demand shifts continuously affect optimal inventory levels in real-world conditions.

Traditional static EOQ calculations fail to adapt to changing market conditions, leading to suboptimal ordering decisions.

Manual Calculation Complexity

Manually recalculating order quantities for large SKU portfolios is time-consuming, error-prone, and often leads to outdated decisions.

Without automated systems, companies rely on gut-feel decisions or outdated parameters, both of which can be costly.

AI-Powered Solution

How to obtain optimal EOQs?

Move beyond guesswork with data-driven EOQ recommendations

Safety Stock Optimizer
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The EOQ Optimizer application is an extension of our digital twin for supply chains. This digital representation enables comprehensive scenario testing to determine the optimal Economic Order Quantities under various conditions — be it changes in demand, forecast accuracy, target service levels, market variations, or seasonal shifts. With adago's solution, companies can move beyond guesswork and outdated parameters.

EOQ Optimization Application Components

Receive alerts when EOQs deviate from the statistical optimum due to real parameter changes. Get a comprehensive overview of all materials, warehouses or transport routes in your portfolio with the ability to filter at any level of granularity.
Alert Dashboard
Proven Results

The EOQ Optimization application has had a lasting impact on our clients

Transform your inventory management with precision-driven EOQ optimization

Cost Reduction

Cost Reduction

Optimize order quantities to find a balance between storage and transportation costs that reduces costs while minimizing stock-outs and emergency replenishments.

Optimal cost balance
Risk Mitigation

Risk Mitigation

Early detection of potential inventory risks through alerts and scenario comparisons to avoid costly interruptions. Reaction to real-time changes in parameters resulting in necessary EOQ adjustments.

Proactive risk management
Increased Efficiency

Increased Efficiency

Automate complex calculations and scenario analyses, reducing manual workload and enabling your team to focus on strategic tasks.

Automated optimization
Moritz Kern, CEO

Moritz Kern

CEO

moritz.kern@adago.de
+49 1578 1521428

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