← Back to Glossary
Inventory

Inventory Optimization

What is inventory optimization in supply chain?

Inventory optimization determines the right quantity of stock to hold at each location in the supply chain to meet service level targets at minimum cost. It balances holding costs, ordering costs, stockout costs, and waste costs. For African FMCG with mixed formal/informal distribution, optimization must account for different service level requirements, varying order patterns, and limited warehouse infrastructure.

How iQStep handles this

Inventory & Replenishment module with EOQ optimization

See iQStep in action →

Ready to optimize your supply chain?

iQStep is the AI-native supply chain platform built for African FMCG and retail companies. Start your free trial today.

Start Free Trial