Chainalytics’ Service Level Optimization service can help you make optimum use of your network capacity and maximize profit margins by recognizing that not all items need to be managed at the same service level. Given your working capital and space constraints, Chainalytics uses activity-based costing to relate your cost-to-serve and customer and product profitability with a location-level assortment of inventory to provide the maximum return on your working capital.

Chainalytics’ Service Level Optimization can help you answer the following questions:

• What is the optimum service level for each finished good within each channel, given capacity, lead time, cost, margin, and backorder penalty constraints?
• Given a pre-determined inventory investment target, what assortment of items should I carry at each location and level?
• If I must reduce inventory, how can the reductions have the least negative effect on service?
• If I offer specific service commitments to my channels, will the corresponding inventory investment or space requirement exceed what I can afford?