Multi-echelon Inventory Optimization

Multi-echelon Inventory Optimization is a method used by companies to manage stock across multiple levels of their supply chain—such as suppliers, warehouses, and retail stores. It aims to determine the best amount of inventory to hold at each level, balancing costs like storage and ordering with the need to meet customer demand. By coordinating inventory decisions across all stages, it reduces excess stock and stockouts, improving overall efficiency and customer satisfaction. This approach considers how inventory flows through the entire supply chain, leading to smarter, more cost-effective stock management.