What is inventory optimization?

Inventory optimization is the process of ensuring that a business has the right amount of inventory at the right locations and at the right time to meet customer demand while minimizing costs such as storage, handling, and obsolescence. It involves analyzing data, forecasting demand, and using tools or software to balance inventory levels without overstocking or running out of products. Effective inventory optimization helps companies improve profitability, enhance customer satisfaction, and respond more flexibly to changes in the market.