The core objective of a good inventory management system is to provide the best possible customer service within the restraint of the lowest practical inventory costs. Good service is the result of ordering the right items and quantities of stock at the right time. Inventory optimization tools help companies make reliable decisions on product replenishment. Making these correct decisions quickly improves efficiency and profitability by improving the forecasting of future demand and through more economic stock holding. Reducing the volume of stock held at any given time has a massive impact on the capital outlay an organization has to make. However, this has to be balanced with the need to maintain customer satisfaction through stock availability.