University of Arkansas
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.