How to meet inventory requirements at one or more locations (e.g., what purchasing and manufacturing decisions meet warehouse inventory requirements and constraints)?

OPTIMAL INVENTORY applications enable users to determine inventory levels by period to meet customer demands at the minimum cost while complying with delivery, storage, production, and available to purchase constraints. Savings are typically 3% or more of total costs of inventory.

An implementation of an OPTIMAL INVENTORY application is determining the minimum cost inventory levels to meet sales demands given order costs and safety stock requirements.


OPTIMAL INVENTORY applications provide decision support for many aspects of inventory management. Optimal Inventory applications include the following:
  • Inventory Management
  • Multiple Period Inventory Management
  • Inventory Management with Uncertain Demand
  • Inventory Management with Short Supply

  • The basic data modeIed includes the following:
  • Item availability for purchase or production by item, location, and period
  • Facility capacities and costs
  • Item beginning inventory with minimum and maximum storage requirements
  • Sales demands by item, location, and period with sales prices
  • Additional rules for safety stock, freshness, and FIFO/LIFO accounting method