In the context of Inventory Optimization, what does 'What If' analysis primarily assess?

'What If' analysis primarily focuses on assessing the impact of adjusted supply chain parameters on inventory levels, service levels, and overall business performance. This analysis allows organizations to simulate various scenarios by adjusting variables such as lead times, reorder points, safety stock levels, or even changes in capacity. By understanding how these adjustments influence the supply chain, businesses can make more informed decisions on inventory optimization, ensuring they meet customer demand while minimizing excess stock or shortages.

This analysis is crucial for planning and can lead to actionable insights on how to enhance efficiency and reduce costs. It supports the critical evaluation of choices that management can make in a dynamic and often uncertain market environment, thus directly correlating with inventory optimization efforts. Other options do not encapsulate the primary focus of 'What If' analysis as effectively as understanding the ramifications of adjusted supply chain parameters.