4. What lessons can you learn from studying this case?

Procter & Gamble (P&G) is a large, diversified, multinational consumer products company. Its modeling and decision support group was asked to create global inventory models. P&G has needed “scientific”
models to help it control its inventory since the mid-1980s when it implemented Distribution Requirements Planning (DRP). P&G needed an easy way to establish reliable safety stock levels at both the item and location levels. This safety stock is needed to allow for uncertainty in demand as well as the uncertainty in production during the time when replenishments would be delivered.