AGENT 02 / 11 · RETAIL & E-COMMERCE · SUPPLY CHAIN & INVENTORY

Inventory Optimization Agent

Turns a demand forecast into a stock policy — safety stock, reorder point and economic order quantity — so replenishment triggers automatically instead of by gut feel.

READS FROMDemand Forecasting Agent output, warehouse master data

MCP SERVERRetail Data Server

MODELRouted to reasoning-tier open model

HANDS OFF TOStockout Risk Monitor, Vendor Performance Analyst

RUN THE AGENT

Set your assumptions, generate the stock policy

Adjust demand, lead time and cost assumptions and the agent recalculates safety stock, reorder point and order quantity instantly.

ASSUMPTIONS

Average daily demand 40 u/day

Demand variability (std dev) 12 u/day

Supplier lead time 14 days

Target service level

Annual demand 15000 u/yr

Ordering cost per order (£) 60

Holding cost per unit / year (£) 4

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Safety stock

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Reorder point

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Economic order quantity

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Total annual inventory cost

Metric	Value

HOW IT WORKS

What the agent actually does

1. Pull the forecast	Takes the Demand Forecasting Agent's weekly output and the warehouse's known lead times.
2. Set the safety buffer	Sizes safety stock to the chosen service level against demand variability over lead time.
3. Calculate the policy	Derives the reorder point and the cost-minimising order quantity (EOQ).
4. Hand off	Pushes the policy to the Stockout Risk Monitor for ongoing tracking and the Vendor Performance Analyst to validate the supplier can hit the assumed lead time.