Case study: Optimal Inventory Identification for a Leading Electronics Contract Manufacturer

About the Client

The Taiwan based client is the world’s largest electronic contract manufacturing company

Business Context

The client was facing a challenge of non uniform utilization of the capacity due to volatility in demand and supply for their configure to order (CTO) business. The client wanted to have better demand and supply interlock with the help of optimal inventory levels at component level

BRIDGEi2i Solution

BRIDGEi2i partnered with the client to create an automated Inventory optimizer application to identify optimal inventory for each component and recommend inventory reorder point.

  • Data experts at BRIDGEi2i took charge of data cleaning, quality management and creation of Master Data. They also created a training set and test set for validation
  • The data engineering team created Master data, they train set and developed test set.
  • They further created an exploded view of SKU level plans and consumption into lowest level parts.

The Machine Learning experts at BRIDGEi2i AI Labs used proprietary algorithms to create segmentation based on usage rate, inventory position, & cost criticality. They maintained optimal inventory considering demand, demand variability, lead time and service levels. They also carried out predictive single value decomposition analysis  and simulation analysis to get optimal results.

BRIDGEi2i’s AI Labs deployed the Inventory Optimizer to calculate the optimal inventory based on statistically derived “supply adjustment factor” and recommend inventory reorder point for each site.

Business Impact

Reduction in the Non Workable Back Orders
Reduction in Excess Inventory