Optimizing the Inventory and Fulfilment of an Omnichannel Retailer: A Stochastic Approach with Scenario Clustering — A Comprehensive Review

Abstract

This research explores tactical and technological approaches to optimize inventory management with the primary objective of reducing overall supply chain costs. It discusses how real-time data analytics, advanced demand forecasting, and lean inventory techniques (such as Just-In-Time systems) help businesses lower holding costs, reduce stockouts, and improve cash flow. The study also examines the role of automation and integrated inventory platforms in enhancing process transparency and responsiveness. Strategic collaboration with suppliers and implementation of robust replenishment algorithms are emphasized as key enablers for maintaining balance between cost efficiency and demand fulfilment. Case examples illustrate how optimized inventory turnover enhances service levels and customer satisfaction.