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The Mathematics Behind our New Technology

Only SDI uses an advanced, multivariate statistical method that employs dynamic modeling of historic demand patterns. It automatically applies the best fit out of 32 different models to an SKU by location — more than double the number of models used in any other system on the market. The more models, the more accurate the results, because you can easily apply the right model to the right inventory class — low-volume vs. mid-range vs. critical spare. Just one mathematical model or model family — common in other systems — will not adequately forecast the demand pattern for all items. Typical min/max methodology used to set inventory levels for MRO, for example, has little effect on seasonal and low-volume materials, which generally represent a significant percentage of a company’s MRO inventory.

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