Lanes can be variable vs. fixed
ILOG PFO will choose the optimal path for each SKU from a number of potential lanes (paths) throughout the finished goods (FG) distribution network.

Offers different transportation modes
Within each lane, different transportation options and their associated costs can be modeled and evaluated.

Provides the ability to set different sourcing policies for local vs. distant suppliers
Each potential supplier can be represented with different sourcing frequencies, quantity constraints, lead times, etc.

Provides the ability to set different inventory policies for regional vs. local distribution centers (DCs).
ILOG PFO allows different policies, such as minimum order quantities, receipt frequency, etc, depending on a customer’s supply location.

Supplier sourcing costs
Each potential supplier may have different associated production or logistics costs that may be incorporated into a model.

Calculates the lowest cost strategy for each SKU and each region
ILOG PFO will determine the cost strategy for each SKU, creating the optimal strategy for the whole network.

Provides total inventory strategies
ILOG PFO can be integrated with ILOG’s other powerful supply chain modules, ILOG Inventory Analyst and ILOG Demand Profiler to give you complete control over all your inventory optimization projects within the same easy-to-use framework.

Improve customer service
Optimize the balance between shipping and warehousing costs and service level requirements for improved product delivery times. The ability to respond to customer pressures and competitive threats is the key to revenue growth.

Improve upon traditional make-to-stock processes
Reap the rewards of significant cost savings by correctly identify the correct SKUs to stock for a region, or which SKUs you should not stock at all. ILOG PFO determines stocking strategies for different SKUs

Optimize product distribution based on regional customer demand
Get the correct distribution flow for each SKU and customer region—every time—for significant supply chain savings.

Reduce distribution costs
Minimize total sourcing, transportation, receiving and inventory costs.

Optimize inventory levels to meet customer requirements
Determine the levels of inventory needed to maintain your customer service goals, based on ILOG PFO’s stocking and distribution strategies. What-if analysis-capabilities allow you to visualize how optimal stocking and distribution strategies change as customer service changes.

Define strategies
Get optimal solutions while trading off transportation, sourcing and inventory carrying costs.

Calculate inventory carrying costs
Detailed reports on the costs associated with inventory can be analyzed and used as an input to optimization.

Calculate warehousing costs
Input material handling and transaction costs when calculating the lowest cost strategy for the network.