Inventory Quantity vs. Location: Two Separate Problems

This post details the architectural decision to decouple inventory quantity and location optimization within C3 AI Inventory Optimization. It explains the rationale for separating these two distinct problems, highlighting the operational, speed, and team-based advantages. The post describes how this separation allows for more specialized and accurate modeling: quantity decisions are handled by single-echelon stochastic optimization that models inventory evolution and determines reorder parameters, while location decisions leverage approaches like the guaranteed-service model (GSM), SMEIO DNN, and MEIO PSO to account for transportation costs, service level agreements, and facility constraints.