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EIS FAQ – Introduction – Q: How did SAP Enterprise Inventory and Service-Level Optimization originate?

This is part of a series of Frequently Asked Questions about the SAP Enterprise Inventory & Service-Level Optimization product.  These FAQ’s are organized into the following categories:

  • Introduction
  • Technical
  • Licensing

A: This product is a combination of the previous Solution Extension products

  • SAP Enterprise Inventory Optimization by SmartOps and
  • Service Level Optimization by SmartOps.

SAP acquired SmartOps in April 2013.

SmartOps established the market space known as “Enterprise Inventory Optimization in the year 2000 based on research originally done at Carnegie Mellon University and Stamford University.  Then called “EIO”, this uses proprietary non-linear stochastic optimization, along with proprietary multi-stage algorithms, to calculate the different forms of inventory necessary at every stage in the multi-echelon supply chain in order to handle order cycles, lead times, and inherent demand-side and supply-side risk and uncertainty.  SmartOps was the clear market leader in this area prior to SAP’s acquiring SmartOps in April, 2013. SmartOps had been an SAP Solution Extension for several years prior to the acquisition.

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