Why Inventory Quantity and Location Should Be Optimized as Separate Problems
C3.ai, Monday, August 17th, 2026
C3 AI argues decoupling how much inventory to hold from where to hold it produces cleaner, more AI-ready supply chain planning.
C3 AI argues that how much inventory to hold and where to hold it are fundamentally different problems that should be optimized separately. Decoupling quantity from location creates clearer objectives and cleaner data inputs for AI models.
It also enables faster responses to disruption, because the two decisions can be revisited on different cadences.
The authors, a supply chain product manager and lead data scientist at C3 AI, argue the split also allows a more deliberate division of expertise across planning teams.
The post is aimed at supply chain planners moving toward AI-driven optimization.