Abstract: An inventory management system and method for maintaining an optimal level of inventory is provided. The invention analyzes a supply chain network to provide an optimal inventory level. The invented method utilizes existing inventory information to calculate an optimal inventory level. The optimal inventory level is used to devise a purchase plan for ordering replenishment inventory. The method also incorporates intra-company lateral transfers into the inventory tracking and ordering requirements. Inventory at multiple locations is considered and used to determine whether transfers of inventory among locations can resolve inventory level issues.