What are the main inventory optimization techniques?

The standard toolkit is eight methods: ABC analysis to prioritise references by value, economic order quantity (EOQ) to size orders, just-in-time (JIT) to minimise held inventory, safety stock to buffer uncertainty, demand forecasting to anticipate need, SKU rationalisation to trim the catalogue, multi-echelon inventory optimization (MEIO) to balance inventory across a network, and vendor-managed inventory (VMI) to delegate replenishment to suppliers. Each solves a real problem, but they share an assumption that their inputs stay stable. In a volatile catalogue, the bigger gains come from applying them dynamically with AI-driven inventory optimization software that recalibrates segments and buffers as demand and lead times move, rather than setting parameters once a year.