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Developing a Warehouse and Inventory Level Optimization system by Deandra T. Cassone, Frank A. Tillman

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Developing a Warehouse and Inventory Level Optimization system

1.1 System Overview

In this project the question is, “How much warehouse space is needed throughout the year?” Before you can determine how much warehouse space is needed, you have to know how much inventory you need to house to avoid stockouts throughout the year. This requires analyzing the demand pattern of each product at the wholesaler level throughout the year and establishing the demand distributions and inventory requirements to cover service for each level of product at each wholesaler. Note that if you were to provide a level of supply for 95% service level for all products, you would need three times the available warehouse space during the high demand season. This then ...

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