This document discusses inventory management for multiple items and locations. It introduces the concepts of:
1) Setting aggregate inventory policies to meet system-wide objectives when dealing with multiple items and locations.
2) Using exchange curves to analyze the tradeoffs between total inventory levels and other factors like number of replenishments and service levels. These curves allow setting parameters like order costs and carrying costs.
3) Determining optimal reorder quantities, cycle stock, and safety stock levels across an inventory system using techniques like exchange curves. This helps allocate limited inventory budgets across items to maximize performance.