Inventory level justification entails assessing and defending the quantity of inventory kept in the supply chain, frequentlyin order to meet operational, financial, or service-level goals. Demand projections, lead times, order cycles, client expectations, and financial limitations are all taken into consideration during this process. To support inventory level decisions and show alignment with business objectives, inventory managers employ a variety of analytical tools, such as safety stock analysis, economic order quantity (EOQ), and service level optimization.
