Optimizing Inventory Service Levels – UA09-SAMS

Equipment Scheduling and Optimization – OSU05-HLBT
June 15, 2015
Modeling the Value Proposition of the Marketplace vs. Direct Connection in the Petroleum Industry – OSU03-01
June 15, 2015

Optimizing Inventory Service Levels – UA09-SAMS

We develop a methodology that estimates lost sales for a corporation. This project considers item level demand and sales at individual clubs, day of the week effects, and product margin to develop a lost sales estimate.


Sam’s Club

Research Team:

Sarah Root

Universities Involved:

University of Arkansas

Start Date:


End Date:



Sam’s Club carries a substantial amount of inventory to ensure that it is in stock of most items. Sam’s has many categories of items, each with a different demand profile, priority, average cost, and so on. This project will explore the tradeoffs between inventory carrying costs, customer service level, and lost sales. This CELDi project aims to optimize Sams’ inventory levels ? that is, to determine how it can best allocate its inventory dollars to items or categories. A proof of concept model will be developed to explore these tradeoffs, and to develop a set of recommended inventory levels.