ToolsGroup unveils algorithms for non-standard obsolescence

July 12, 2015 - Research P124

On June 29, 2015 ToolsGroup announced the release of new algorithms to model product obsolescence with more precision. Companies can use these algorithms to determine the point in a product’s life cycle where the value deteriorates or costs increase such that the business won’t be able to extract the highest possible profit margin from a sale. Armed with that information, a business can optimize stock holdings in tighter alignment with marketplace demand, avoiding profit erosion while reaping costs savings from inventory optimization and reduced product obsolescence. Nucleus has found an early adopter of these algorithms has managed to cut inventory and obsolescent costs by 20 percent in just three months.