Shadow optimization

Shadow optimization enables IBM Sterling Fulfillment Optimizer with Watson to calculate the benefits related to specific business objectives so that you can get a better understanding of how you would benefit from using Fulfillment Optimizer.

Shadow optimization is enabled for every order and optimizer settings are used without using stockout avoidance or markdown avoidance model settings. This enables optimizer to capture the data required for Benefit report calculations.

Additionally, Fulfillment Optimizer receives the possible solution from your order management system and uses that to calculate the base shipping costs. Shipping costs are calculated for the base solution based on transit, rate and carriers present on Fulfillment Optimizer. The base solution supports various attributes that can tell IBM Sterling Fulfillment Optimizer with Watson what was the potential solution outside of Fulfillment Optimizer and what was the carrier service selected. If carrier information is not passed with the base solution, Fulfillment Optimizer picks the cheapest carrier and service available for that solution. The Shadow optimization done without stockout or markdown can then be compared to base solution to determine the benefit of using shipping models.

The Without inventory model column within Benefits report displays the values associated with alternate optimization without the inventory model.

The No optimization column displays the values associated with using an external solution without Fulfillment Optimizer.