This white paper will help SAP customers understand how to gain better visibility into demand, enabling planners to modify inventory to reduce carrying costs without negatively impacting customer-service levels and sacrificing product availability. This white paper examines the stochastic multi-stage, multi-inventory model which recognizes a simple fact: Inventory targets at one location affect and are affected by targets at different locations. To minimize the need for excess safety stock, this model uses an efficient computational process in which multiple mathematical equations are solved simultaneously to reveal optimal inventory targets.