In a simple sense, inventory optimization is what you get when you strike the perfect balance between having enough inventory to satisfy your customer service standards while stocking as little inventory as possible. Customer service standards involve meeting demand—but not past the point that you have too much. But inventory optimization gets complicated when supply and demand are constantly in a state of flux across a sizeable number of SKUs. The larger the complexity, the bigger the challenge.
Inventory Optimization and the Informed Business
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