Insights
Dataleo Insight · 2026-06-19· Inventory Planning

Inventory Optimization Without Flow Management Is Incomplete

Bernard Milian argues that Inventory Optimization is incomplete when separated from Inventory Planning and flow management. A mathematically lower stock target creates value only when replenishment, variability and execution priorities can support it.

Value requires buffer rules connected to actual lead times, demand patterns and service objectives; the principal failure mode is reducing inventory locally while increasing shortages, expediting or instability elsewhere in the flow.