Our Software PeakProfit Maximizes Profit by Optimizing Service Levels

Our algorithm takes into account all relevant factors that influence your inventory costs to maximize profit. These include:

• Lost Sales Cost: The revenue you lose when a product is out of stock. Such costs can be significant, especially for high-demand items, and must be minimized by maintaining an optimal service level.
• Financial Carrying Cost: This represents the interest you could have earned if the funds tied up in inventory were invested elsewhere. It’s an opportunity cost that directly impacts your bottom line, making it crucial to balance inventory levels carefully.
• Physical Carrying Cost: These are the expenses associated with physically storing and handling inventory, including warehousing, utilities, insurance, and the risk of obsolescence. These costs vary by product type but generally fall between 20% and 40% of the inventory’s value.
• Stockout Penalties: In certain industries, particularly aerospace, contracts may include penalties for failing to meet delivery obligations. For example, if you cannot deliver a required part on time, you may incur a penalty, often a percentage of the item’s value.

The algorithm is implemented in our software, PeakProfit, which includes a SaaS API that allows users to make calls programmatically, as well as a user-friendly web application. You can take advantage of our web application for free with basic usage at https://optimize.sscostmodel.com/.

Revolutionize Your Inventory Strategy: The Power of Optimizing Service Levels

Did you know that by setting the service level optimally, you can increase profit by 17%? For years, determining the optimal service level for inventory items has been more of an art than a science. Businesses have often resorted to choosing service levels like 99%, 95%, or 90% without any precise justification, relying on intuition rather than data. But not anymore.

Introducing our groundbreaking software, designed to revolutionize how you approach inventory management. For the first time ever, you can pinpoint the exact service level of inventory items that maximizes your profit. Our software leverages advanced algorithms and data-driven insights to take the guesswork out of inventory decisions, providing precise recommendations tailored to your unique needs.

Stop relying on rough estimates and start making informed, profit-maximizing decisions. You can take advantage of our web application for free with basic usage at https://optimize.sscostmodel.com/.