RopRoq is an international developer of automated inventory control systems.
We offer a method of increasing enterprise profitability through improved inventory management with RopRoq solutions.
The re-order point (ROP) and re-order quantity (ROQ) are determined for each SKU in RopRoq Inventor System. This is done by solving an optimization problem that takes into account all the financial parameters of the business such as selling and purchasing price, accounts payables and receivables, borrowing costs, shipping costs and customs, the cost of warehouse operations and lease, cost of supply organization, etc.
The criterion of optimization in RopRoq Inventor System is the “company's net profit”. All the existing features of the business and resource constraints are taken into account for optimization problem solution. Among the available resource constraints are: the warehouse capacity, the volume of credit line, the throughput of the warehouse acceptance.
RopRoq Inventor System is applicable to all SKU regardless of the SKU ABC-XYZ-classification. Inventor allows you to manage assortment policy on the basis of the profitability of each SKU.
RopRoq Inventor is not only instrumental support of the purchase process, but also a means of objective control of the inventory KPI.
We are ready to make a presentation for you and your colleagues with the justification of RopRoq approaches to effective inventory management.
We provide links to the leaders and specialists of the companies in which the RopRoq products are installed. We are also ready to help in organizing demonstration visits to the enterprises in order to show the practical Inventor work of tuners, operators, buyers and assortment specialists, as well as managers at various levels.
The main effect of the RopRoq Inventor System implementation is achieved by reducing the out-of-stocks,
reducing storage costs and optimizing the frequency of replenishment. It also frees up resources of purchasing
department and warehouse acceptance by reducing the replenishments.
RopRoq Inventor System allows you to manage
assortment policy on the basis of the profitability of each SKU. RopRoq Inventor System is not only instrumental support
of the purchase process, but also a means of objective control of the inventory KPI. Thanks to RopRoq Inventor System the
purchasing process becomes absolutely transparent and objective. Also RopRoq Inventor System allows reducing the
dependence on human factors.
Use of RopRoq allows you to:
RopRoq Inventor System has a well defined objective function - "Profit."
Because the RopRoq Inventor System operates on the "intersection" of finance and procurement, the system constructs a full financial business model for each SKU that takes into account thet following parameters of activities: buying and selling prices, fees and charges, deferred payment, accounts payable, accounts receivable, lead times, transport costs (LC), the cost of borrowed funds, the cost of rent, the cost of warehouse and office operations, the costs of organizing supplies and more.
The system does not set hypotheses about the type of the probability distribution of demand, and uses actual probability distributions. RopRoq Inventor System can be applied to all items regardless of the ABC-XYZ-classification, including the rare-demand goods.
The system solves the optimization problem in any resource constraints and their combinations such as: capacity of the warehouse, the amount of funds in the commodity, the amount of borrowed funds, etc.
RopRoq Inventor.Supply solves the basic problem of the daily supply. Optimal combination of ROP and ROQ is determined with the main core of the RopRoq Inventor System. All the existing resource constraints and features of the business are taken into account when solving complex optimization problems.
Often, strict adherence to the optimal parameters (ROP and ROQ) is impossible in view of additional external restrictions imposed by the supplier, transportation companies and other contractors, but also because of unpredictable realities of the business. Examples of such actions are rounds for transport packaging, minimum vendor party, limiting the volume of the container or truck, special conditions on the selected delivery, the expected increase or decrease in prices, the need of order for getting annual bonus, etc.
All these effects lead to the fact that the company is forced to deviate from standard inventory control strategy and to bear an additional loss. The main essence of the problem of delivery is to minimize loss when you deviate from the ideal "trajectory" of the purchase (the deviation from the optimal ROP and ROQ).
The solution of local problems can not be given without finding the optimal inventory management strategy in RopRoq Inventor System - without a global optimal solution of the purchase.
RopRoq Inventor. Supply solves the following tasks:System Inventor.Fresh - a system for automated inventory management of stocks of goods with short “best-before” periods, so called "perishables". Inventor.Fresh determines the ROP and ROQ for each "perishables" SKU.
The basic optimization principle in RopRoq Inventor.Fresh system is the same for all products by RopRoq: the calculation of commercial profit in the arbitrary nature of demand.
As an objective function of optimization in RopRoq Inventor.Fresh, as in RopRoq Inventor System, using the total profit received by the company.
Unlike other products of RopRoq, along with the costs of the out-of-stocks, storage and replenishment, RopRoq Inventor.Fresh system additionally takes into account the disposal costs of expired goods. For products with short shelf-life the management options are critically dependent on the purchase of the day of the week. Therefore, special attention in the RopRoq Inventor.Fresh is paid to the inter-variability of demand.
