Inventory Allocation Optimization with Grid Dynamics

Optimize stock levels across locations, improve fulfillment SLAs, and minimize order shipping costs.

The goal of this adapt and apply solution is to show retail organizations how Dataiku can be used to optimize stock levels across locations, improve fulfillment SLAs, and minimize order shipping costs.  More details on the specifics of the solution can be found on the knowledge base.

Business Overview

Managing inventory levels across multiple locations is a mission critical task for retailers of perishable and seasonal goods, and overall represents a significant challenge for all organizations managing complex supply chains with impact on costs, customer attractiveness and competitiveness. 

Leveraging data and analytics offers Supply Chain Managers the opportunity to rethink allocation strategies of inventories across warehouses and other locations to:

  • Minimize the order shipping costs by allocating to the most optimal locations and sourcing orders from there
  • Reduce/avoid order splits (i.e. sourcing one order from multiple locations)
  • Reduce/avoid expensive shipping options (e.g. international shipping due to local stockouts) 
  • Reduce/avoid cross-warehouse inventory movements and backorders
  • Improve customer experience by increasing availability and providing better order fulfillment SLAs

With the Inventory Allocation Optimization solution powered by Dataiku and Grid Dynamics, Supply Chain Managers and their Analytics teams take a jump start in determining the optimal allocation parameters for their inventories based on specific business objectives and constraints. With the comprehensive insights provided in the scalable Dataiku platform, Supply Chain Managers quickly embark in a successful journey to streamline their end-to-end supply chain operations.


  • Easily integrate all input data: plug Dataiku to all your systems to access past transactions, demand forecasts, shipping costs information, warehouse supply information, list of store and warehouse nodes.
  • Combine to scale: leverage Dataiku Demand Forecast solution to power Inventory Allocation Optimization.
  • Quickly adjust settings: use the Dataiku application to set constraints and optimization parameters.
  • Share the optimization results: leverage a user-friendly dashboard to share information across Supply Chain Managers
  • Automate the entire pipeline to refresh the input data, rerun the optimization, and send the results to the downstream optimization systems.
  • Leverage Grid Dynamics length of expertise in delivering advanced AI projects on Dataiku to promptly implement this solution across your organization.