Case Study: American Multinational Corporation reduces inventory and shortages with BRIDGEi2i Analytics Solutions

Buffer Stock Analysis for a Leading Networking Equipment Manufacturer

American Multinational Corporation, an American networking equipment manufacturer, needed a better way to manage abrupt customer demand and SKU-level buffer stock decisions. BRIDGEi2i Analytics Solutions was brought in to help replace planner-driven, experience-based buffer allocation with a more scientific, optimized approach for safety stock at the lowest component level.

BRIDGEi2i Analytics Solutions deployed an optimizer solution using data cleansing, master data creation, segmentation, simulation, and machine learning to calculate optimal bump-up factors and calibrate buffers for MRP processing. The engagement delivered a 22% reduction in shortage situations, a potential 45% reduction in component-level inventory, and an estimated $4.2 million in inventory capital cost avoidance.