1. Copyright 2013 JDA Software Group, Inc. - CONFIDENTIAL
How much inventory is in the world? The short answer is that no one
knows for sure, and no one keeps track of it at a global level.
However, with some simple data points and deductions, one can
probably arrive at a reasonable approximation of how much inventory
is out there. This question gives us an understanding of how efficient
the world is in turning inventory into economic output.
Read: Funding Growth
Multi-echelon inventory optimization takes a strategic,
network view of the supply chain and establishes
inventory policies based on tailored strategies. Key
ingredients to successfully executing this are:
• Institute a single view of demand, tied to the real
• Segment demand and supply based on different
products, customers and times.
• Tie inventory management to business strategies.
• Deploy tools that optimize, produce multiple
scenarios, and provide the means by which to make
and deploy policy decisions.
• Make inventory policy management a regular
process with integrated strategic, tactical and
Meet the Author:
Kelly Thomas is a supply
chain professional and
executive at JDA Software. He
has nearly 30 years of
experience in leading teams in
design, development, sales
and delivery of supply chain