What is S&OP

This chapter provides an overview of select inventory optimization (IO) techniques for single and multi-echelon optimization. The main goal is to familiarize the reader with various IO models by providing a clearly structured approach, improving the reader's understanding of the mathematical concepts, and by providing an ample number of examples. Furthermore, the guaranteed service model for a three stage serial supply chain is introduced to show the effects of keeping inventory at different echelons in the supply chain in regards to total cost. Lastly an inventory planning maturity model is presented to show actionable next steps to the practitioner.