Inventory takes many forms, ranging from raw materials to finished goods. While holding large amounts of inventory enables a company to be responsive to fluctuations in customer demand, the associated costs can be excessive. In order to operate in a lean environment at maximum efficiency levels, companies must minimize all unnecessary expenses, including those associated with production and storage of inventories.

This paper examines many of the challenges companies have managing their inventory, and shows how an integrated Inventory Optimization solution can substantially improve their overall supply chain operation.