Inventory Optimization Agent

Agent Description:

The Inventory Optimization Agent provides an end-to-end solution for balancing stock levels with market demand. It synthesizes data from multiple business areas—including sales, customer behavior, product performance, and supplier logistics—to create a holistic view of the supply chain.

Using this comprehensive analysis, the agent recommends optimal inventory levels, reorder points, and safety stock adjustments. This helps businesses prevent costly stockouts on popular items while minimizing the financial burden of excess inventory on slow-moving products.

Purpose and Components
  • Purpose: To automate the analysis of retail data to recommend optimal inventory levels, balancing supply and demand.
  • Components:
    • Data extractors for customers, products, sales, suppliers, and current inventory.
    • A core optimization engine to synthesize data and provide actionable recommendations.
Supported Capabilities
  • Analyzing sales trends, customer purchasing behavior, and individual product performance.
  • Evaluating supplier lead times, delivery reliability, and logistics costs.
  • Identifying overstocked and understocked items based on demand forecasts.
  • Correlating supply chain performance with inventory gaps and stockouts.
  • Recommending specific reorder quantities and safety stock levels for each SKU.
  • Generating comprehensive reports with clear, actionable insights for inventory managers.
LLM Used

Sub-Agents

1. Customer Agent

  • Role: Data Analyst.
  • Scope: Extract and analyze the Customers table to identify customer profiles, buying frequency, and regional trends.
  • Description: This agent focuses on the customer by extracting and analyzing data to identify key segments, regional demand centers, and average order frequencies. It helps understand who is buying what, which informs demand variability.
  • LLM Used: Default (Inherits from parent agent).
  • ToolsUsed: SQL Query Tool , List SQL Tool , Info SQL Tool

2. Inventory Agent

  • Role: Inventory Optimizer.
  • Scope: Extract and analyze the Inventory table to evaluate stock levels, reorder points, turnover rates, and holding costs.
  • Description: This agent provides a real-time snapshot of the warehouse. It extracts data on current stock levels and compares them against reorder thresholds to identify items that are overstocked or at risk of stocking out.
  • LLM Used: Default (Inherits from parent agent).
  • ToolsUsed: SQL Query Tool , List SQL Tool , Info SQL Tool

3. Product Agent

  • Role: Data Analyst.
  • Scope: Extract and analyze the Products table to categorize products, evaluate pricing, and flag slow/fast movers.
  • Description: This agent analyzes the product catalog to determine which items are high-priority, high-margin, or fast-moving. It also tracks product lifecycle stages and seasonality to better predict inventory needs.
  • LLM Used: Default (Inherits from parent agent).
  • ToolsUsed: SQL Query Tool , List SQL Tool , Info SQL Tool

4. Sales & Demand Agent

  • Role: Data Extractor.
  • Scope: Extract and analyze the Sales and DemandForecast tables to uncover demand trends, seasonality, and sales drivers.
  • Description: This agent analyzes historical sales data to identify trends, peak demand periods, and seasonality. Its primary function is to forecast future demand, which is a critical input for inventory planning.
  • LLM Used: Default (Inherits from parent agent).
  • ToolsUsed: SQL Query Tool , List SQL Tool , Info SQL Tool

5. Supplier Logistics Agent

  • Role: Data Extractor.
  • Scope: Extract and analyze the Suppliers and Logistics tables to evaluate supplier efficiency, lead times, and delivery accuracy.
  • Description: This agent focuses on the supply side, analyzing supplier lead times, delivery reliability, and shipping costs. It helps correlate logistics performance with stockouts and identifies areas for supply chain improvement.
  • LLM Used: Default (Inherits from parent agent).
  • ToolsUsed: SQL Query Tool , List SQL Tool , Info SQL Tool

6. Inventory Optimization Agent

  • Role: Inventory Optimizer.
  • Scope: Provide a comprehensive report with actionable recommendations for each SKU to optimize inventory management, improve efficiency, and reduce costs.
  • Description: This is the central agent that synthesizes the analyses from all other sub-agents. It compares forecasted demand with current stock and supplier lead times to identify optimization opportunities, recommending precise reorder quantities and safety stock levels.
  • LLM Used: Default (Inherits from parent agent).
Tools Used
  • Query SQL Tool – For executing SQL queries on purchase and inventory tables.
  • List SQL Tool – For listing all available tables in the inventory database.
  • Info SQL Tool – For understanding column definitions and data structures within the database.
Note: For details on modifying the Tools, refer Tools Library section.
Agent Workflow Behavior Summary
  • The five extractor agents (Customer, Inventory, Product, Sales & Demand, Supplier Logistics) connect to the database to pull and analyze data from their respective domains.
  • Each agent provides a structured analysis (example, demand forecast, supplier lead time report, current stock levels).
  • The main Inventory Optimization Agent takes these multiple inputs and synthesizes them.
  • It cross-references the demand forecast with current inventory and supplier reliability to identify items that are either overstocked or at risk of selling out.
  • Finally, it generates a single, comprehensive report with actionable recommendations, such as "Reorder 150 units of SKU X" or "Increase safety stock for SKU Y by 15%".
Sample Questions:
  • Which products are currently low in stock but have high recent sales?
  • Show me the top 5 products with the highest demand in the last 30 days.