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How do we optimize the network?

Inventory management influences KPIs in sales, operations, marketing and finances. The goal of inventory management is to find a balance between minimizing inventory costs and achieving the desired service level. Getting to this precise equilibrium is easier with Shark Optimization projects. We use demand data to define the right safety stocks toward achieving the service level defined for your company.


We understand the demand is not the same for all products, and therefore is not accurate to use standard inventory policies for all products. Our processes and tools make it possible to identify and classify the demand per product per customer. The demand classification then suggests the type of inventory policy to use. We also account for opportunity costs, lead times variability, resupply frequencies, supply and demand variability, and service levels.

The inventory optimization analysis allows companies to measure the impact of different service level scenarios in the model, without affecting the current supply chain.

business case

Inventory assessment for a spare parts warehouse


A spare parts supply warehouse managed high inventory values ​​and maintained a perception of low service level due to frequent stock-outs.


The warehouse management system was capable of managing R,Q inventory policies. However, the R, Q values had not been established based on historical data.


The consulting team developed a project to assess current inventory metrics and processes for spare parts.

The project included:

  • Review of current processes

  • Historical data analysis

  • Classification of spare parts under Vital-Essential-Desirable analysis

  • Establishment of existing service level

  • Definition of changes in the processes and in the use of technology to improve the service level


The company achieved a better understanding of their inventory and set the bases for future improvement:

  • Identification of opportunities to improve the ordering and replenishment processes

  • Improvements were extended to other areas of the department

  • Creation of inventory policies for +300 items

  • Potential improvement in service level of vital parts from 90% to 99%


  • Supply Chain Digitalization


Tel: + (507) 304 8280


Ave. Omar Torrijos Herrera, Ancón, Corozal Este, Edificio #201, Ciudad de Panamá, al lado de la estación del tren de pasajeros.

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