The classic problem of inventory balancing is as ubiquitous as your most basic supermarket item. Think about a single brand of cereal in the breakfast aisle. Consider, how many boxes should be here? The answer is certainly not two... because after just a few cereal-minded customers walk by, the store will be out of inventory and lose sales. The answer isn’t 200 either. Too many boxes and inventory will end up sitting a long time, taking up space, tying up capital, and potentially expiring on the shelf. To expand this example to high-ticket items thus making the problem more extreme pretend each of those boxes of cereal costs $30,000 to stock.

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