Abstract: An inventory optimization system is disclosed. The system comprises of an inventory interface configured to receive inventory policy criteria representing possible conditions of a plurality of inventory policies by which an inventory could be managed. An optimization engine is provided to generate the plurality of inventory policies based on the inventory policy criteria with each inventory policy having an assumed future demand model. The optimization engine is also configured to use a simulation engine to simulate how each inventory policy would perform (i.e. a cost to run the inventory policy) under different estimated demand. The optimization engine is configured to rank the plurality of inventory policies based on their performance under the simulations.