The application of utility computing and Web-services to inventory optimisation

The paper discusses the application of Web services and utility computing for inventory optimisation in manufacturing systems. The business case is highlighted from an inventory optimisation case study conducted with a UK based small-medium enterprise (SME) positioned within the discrete manufacturing industry. To measure the performance of the SME, a tried and tested methodology was applied. The challenges faced by organisations in cost effectively optimising inventory are discussed, detailing the traditional approaches and solutions, and exploring the alternative utility computing model and its associated benefits. The proposed functionality of a Web service solution is simulated in the case study to highlight the business benefits it could deliver. This provides the foundations for the design and architecture of the Web-service solution delivered as a utility computing model. The paper also details how the solution would interact with an enterprise resource planning (ERP) system to automate the optimisation process.