To boost efficiency, run leaner, and drive down the cost of supply, many organizations are exploring inventory optimization – a technique for improving operational inventory targets to address the realities of today’s highly complex, ever-evolving global supply chains.

This paper examines how the stochastic multistage, multi-inventory model supports inventory optimization. It also looks at how the SAP® Enterprise Inventory Optimization application by SmartOps uses the model to help supply planners execute more effectively in a highly collaborative enterprise environment that extends beyond organizational boundaries.