Measures how effectively inventory is allocated across multiple locations or production lines to meet demand.

What it Measures ?

Inventory placed in the right regions to meet demand.

Relevant StakeHolders 

Supply Planner, Inventory Manager

In-depth Use Case / Real-world Example

A company manufacturing industrial valves calculates Strategic Inventory Allocation by assessing how inventory is distributed across its warehouses or production sites to ensure demand is met without overstocking. For example, if 80% of the inventory is optimally distributed to meet customer needs, the company achieves a high level of inventory allocation efficiency.