Warehouse and inventory planning are critical for a stable and flexible supply chain. The right stock management policy allows the reduction of the stock value that is idle, while ensuring order fulfilment and reduced stockouts.
With the right communication flow across the supply chain, and a set of assertive stock management policies, it is possible to create synergies, tackling the bullwhip effect responsible for excessive inventory investment. On the other hand, the response lead time to fulfil an order should be as short as possible. Hence, the importance of having the right stock distribution across the warehouse and picking strategies resulting in less movements and time.