How does the relatively new software category of Inventory Optimization differ from traditional supply chain planning tools?

In general, vendors and supporters of Inventory Optimization technology say these tools look to simultaneously optimize inventory targets across multiple levels of the supply chain, while traditional supply chain planning tools often look more to optimize inventory at individual levels without always considering inventory in other "echelons."

The table below was taken from the recent Supply Chain Digest Letter on Inventory Optimization (See Inventory Optimization Resources Page.)

Inventory Optimization versus Traditional Planning

Source: SCDigest Letter

.

Agree or disagree? What is your perspective? Let us know your thoughts at the Feedback button below.