Inventory parameters established using analytic inventory techniques typically are based on balancing:

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Analytic inventory techniques aim to optimize the balance between customer service levels and inventory costs. These techniques use mathematical models to identify the optimal inventory levels that meet customer demand while minimizing inventory costs such as holding cost and ordering cost. Supply and dependent demand, transportation and warehousing costs, and decision-making costs are all factors to consider in inventory management, but they are not the primary focus of analytic inventory techniques.

Inventory Parameters Established Using Analytic Inventory Techniques Typically Are Based