Optimization

Optimization is a technique for making the best decisions to obtain the highest revenue or maximum return through the use of inventory and pricing controls.

Traditional approaches have been unable to efficiently support real time requirements due to changes in the operating environment causing a “from scratch” analysis to search for a new optimal solution. Such approaches are both time-consuming and unrealistic for effective use in planning real-time operations or optimizing decisions in real time.

In the IDeaS approach to optimization, the real-life uncertainties which exist in the business world are addressed explicitly by the solution. In addition, problems are broken down into smaller, more solvable pieces through pragmatic analysis that insures that the solutions will result in the highest company-wide profitability. In the course of this analysis, critical leverage points are identified within the company where careful attention to the management of resources will pay the greatest rewards.

• Model Real World Input: React in real time to market changes ensuring maximization of revenue in high or low demand periods
• Incorporate Uncertainty: Manage the inherent uncertainty in the market to obtain optimal decisions while still providing real time support
• Provide Real Time Processing: Effectively break down complex real world problems into solvable pieces which result in the highest company-wide profitability through identification and focus on the management of resources which will pay the greatest rewards

IDeaS Optimization models are designed to analyze business strategies on a network level to gain the highest contribution possible from the network, both in cases where the demand exceeds capacity and via pricing to capitalize on excess capacity where demand is weak.

For more information on IDeaS’ approach to Optimization in your industry, contact IDeaS.