Multi-echelon inventory management is an approach to inventory management that seeks to optimize the inventory levels of multiple tiers of inventory, such as raw materials, work-in-progress, and finished goods. It is a way of managing inventory across multiple locations, such as warehouses, distribution centers, and retail stores. The goal of multi-echelon inventory management is to reduce inventory costs while maintaining customer service levels. This is done by balancing the inventory levels of each tier of inventory, and using a variety of techniques, such as inventory optimization, inventory pooling, and demand forecasting. By managing inventory across multiple echelons, companies can reduce inventory costs, improve customer service, and reduce the risk of stock-outs. Multi-echelon inventory management is an important part of supply chain management, and is essential for companies that want to maximize their profits and minimize their costs.
