Inventory optimization model to support customer needs while meeting business targets
Manufacturing is a $174 billion industry in Canada, representing over 10% of total GDP and 68% of merchandise exports. Inventory is the largest spend and asset for manufacturing companies, and efficient inventory management is a proven strategy to increase profitability in the manufacturing sector. The aim of inventory management is to achieve satisfactory levels of customer service while minimizing inventory costs in order to maximize profitability. The proposed research will create an inventory optimization model to assess factors influencing inventory of a Canadian electronics manufacturer and predict optimal levels of inventory to support customer needs while meeting business targets. This predictive model will provide significant cost-savings and improve customer satisfaction, supporting the company’s continued growth and creating high-quality jobs for Canadians.