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Improving Inventory Optimization for Product Promotions

About this paper

Inventory optimization solutions are designed to help retailers determine the right product quantities to order to meet expected demand. But these solutions frequently fall down when it comes to managing inventory levels for product promotions. The result is out-of-stocks at the beginning of the promotion and overstocks at the end. This paper describes how inventory optimization solutions must better mimic real-world conditions to accommodate promotional demands in order to truly optimize the replenishment process.

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