Inventory Management Decision Support
Inventory planning and management represents a critical component of logistics management. Insufficient levels and/or poor positioning and deployment practices can severely damage customer service fill rates. Conversely, prolonged excess inventory levels can damage a firm’s financial performance and also create operational inefficiencies (e.g., overcrowded, underperforming warehouse operations). Thus, integrating inventory planning with overall logistics network planning activities is critical.
In this chapter, we illustrate an approach that facilitates determining an integrated network/facility design and inventory investment/deployment plan. Recall that Chapter 6 previously described ...