Successful implementation of an inventory optimization solution requires significant effort and can pose certain risks to companies implementing such solutions. Depending on the complexity of the requirements, the solution may also involve a substantial IT investment. In this paper, we present a cost-effective solution for inventory optimization that can be useful for small and medium-sized businesses with limited IT budgets. This solution can be implemented on any application platform that is capable of processing basic SQL™ (Structured Query Language) commands. The solution eliminates the need to purchase additional software and has a framework in which sales data in an Enterprise Resource Planning (ERP) system are accessed, demand statistics based on this data are generated along with other key parameters, and optimal inventory policies, such as those involving safety stocks and lot sizes, are calculated and reported.
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