Computation of optimal inventory targets in bill-of-materials in a multi-echelon supply chain

A computer-implemented method of determining inventory targets in bill of materials in a multi-echelon supply chain network thereby reducing computational run time of a computer, the method comprising:

• determining a first delay time between at least two source nodes of a second indenture level and a destination node of a first indenture level;
• determining a second delay time between the destination node of the first indenture level and a finished good, wherein the second delay time is based, at least in part, on increasing a mean and a standard deviation of a lead time between the destination node of the first indenture level and the finished good by a mean and a standard deviation of a lead time of a bottleneck between the at least two source nodes of the second indenture level and the destination node of the first indenture level;
• determining an optimal inventory target based, at least in part, on the first and second delay times thereby reducing computational run time of the computer;
• and
• adjusting an inventory of at least one node based, at least in part, on the optimal inventory target.

A non-transitory computer-readable medium embodied with software to determine inventory targets in bill of materials in a multi-echelon supply chain network, the software when executed by one or more computers is configured to:

• determine a first delay time between at least two source nodes of a second indenture level and a destination node of a first indenture level;
• determine a second delay time between the destination node of the first indenture level and a finished good, wherein the second delay time is based, at least in part, on increasing a mean and a standard deviation of a lead time between the destination node of the first indenture level and the finished good by a mean and a standard deviation of a lead time of a bottleneck between the at least two source nodes of the second indenture level and the destination node of the first indenture level;
• determine an optimal inventory target based, at least in part, on the first and second delay times thereby reducing computational run time of at least one computer of the one or more computers;
• and
• adjust an inventory of at least one node based, at least in part, on the optimal inventory target.