Which can NOT be used as input for inventory level optimization?

In the context of inventory level optimization, safety stock is fundamentally a buffer against uncertainties in demand and supply variability, rather than a direct input for calculating inventory levels. The purpose of safety stock is to prevent stockouts when actual demand exceeds forecasted demand or when there are delays in supply chain delivery. Therefore, while safety stock plays a critical role in overall inventory management and is influenced by optimization processes, it is not used as a direct input parameter for optimizing inventory levels.

On the other hand, reorder points, target inventory levels, and historical sales data all serve as key inputs in the optimization process. The reorder point is crucial for determining when to replenish stock; target inventory levels help drive the desired inventory status; and historical sales data is frequently analyzed to forecast future demand, thereby informing optimal inventory decisions.