Optimal Inventory quantity for e-commerce websites

Determining the optimal quantity of inventory at a given time, can be an extensive analytical tasks, with input spanning multiple departments. Determining the optimal quantity to hold, means balancing the negative impact of out of stock, with the cost of holding inventory.

Out of stock risk — lost or delayed sales

Beside the poor customer experience, having items out of stock (oos) also leads to lost or delayed sales. Being able to both quantified these lost or delayed sales and effectively…