How does Supply Chain Planning Software optimize Inventory levels?

Inventory optimization is not about cutting stock blindly. It’s about balancing service, cost, and risk.

Modern Supply Chain Planning Software use:

- AI-driven demand forecasting
- Variability analysis (lead time + demand volatility)
- Dynamic Safety Stock calculations
- Multi-echelon optimization across the network

Instead of fixed buffers, the system continuously adjusts Inventory policies based on real data.

This means:

- Lower working capital
- Fewer emergency orders
- Fewer zero-stock days
- Higher customer satisfaction

The most advanced platforms use probabilistic forecasting to model uncertainty — allowing companies to set service targets based on risk tolerance, not guesswork.