Today’s customers want the right product, at the right time, in the right amount. Due to a large number of product demands and availability, efficient inventory management is an integral part of a business to run it efficiently. Inventory planners should consider buffer/safety stock, reorder level, pipeline stock, anticipation stock, cycle stock, etc. while managing inventory.
Even suppliers can help to manage optimum inventory level through various types of collaboration with the organization These are
a) Vendor Managed Inventory (VMI)
b) Collaborative Planning, Forecasting, and Replenishment (CPFR)
c) Collaborative Transportation Management (CTM)