Case Study $-$ Warehouse Design and Layout Stella's Apparel is a well$-$established clothing manufacturing company with a production facility and warehouse located in Johannesburg. The company distributes its products to customers across South Africa, with major markets in Durban and Port Elizabeth. Despite its long$-$standing presence in the industry, Stella's Apparel has experienced a decline in revenue over the past few years. One of the primary reasons for the revenue decline is attributed to stockouts at the company's warehouse, leading to missed sales opportunities and customer dissatisfaction. Additionally, there have been increasing complaints from customers regarding poor customer service experiences, including delayed order processing and inadequate communication.

QUESTION $2$: $(25)$

Develop a comprehensive inventory optimisation strategy for Stella's Apparel to mitigate stockouts and overstocking issues while ensuring adequate stock levels and minimising carrying costs. Outline specific steps and techniques that the company can implement to improve demand forecasting, establish reorder points, and optimise inventory replenishment processes.