networks often consist ofa retiumal distribution center and a larger namber of forward dintribution centers. The presence of multiple echelons in a distribution network makes inventory management more difficult because each echelon inolated from other echelona, bo chan gen in inventory made by one echelon may have unpredictable consequencen on the others. Multi echelon inventory optimization seeks to the total inventory in all of the echelonn of a company's aupply chain. niin is more complicated than traditional inventory optimization because o the additional lead times between each ethelon, bullwhip effect, and the need to diynchronizo arde and control costs between echelons. Companies with this level of complexity in their nupply chaina must replenish and divide their inventories at each distrib- ution point along tho supply chain, as opposed to just one distribution point or oven just the inventory of the initial supplier Each point in the supply chain is of the inventory levels of painta beyond those that they have immediate contact with, which creates a lack of visibility up and down the supply chain. The multi-echelon approach to inventory manage- ment consists of the following factors: multiple independent forecast updates in each echelon; accounting for all lead times and variations in lead management of the bullwhip effect: creation times of visibility up and down the demand chain; synchro- nized order strategies; and appropriate modeling of the effects of different echelons' replenishment strategies on one another. P&G prefers to develop its own analytical tools but in this case turned to optiant for its Powerchain Suite multi-echelon inventory optimization solution. Gillette, which P&G was preparing to acquire at the time, had already begun using optiant software with strong results, PowerChain Suite determines appropriate inventory configurations that can adapt smoothly to quickly changing demand. The solution uses mathematical models, based on award-winning research from MIT, which balance costs, resources, and customer service to arrive at these configura- tions, Powerchain tools pool inventory to minimize risk across products, components, and customers and also coordinate inventory policy across differ-