Inventory optimisation is the process of maintaining ideal inventory levels using analytical tools, demand forecasting, safety stock calculations, and automated replenishment. Optimisation aims to minimize holding costs, prevent stockouts, and maximize customer service levels.
Characteristics:
- Achieves balance between inventory costs and demand fulfillment
- Uses forecasting and data-driven analytics
- Reduces waste, overstocking, and shortages
- Improves cash flow and operational efficiency
