What is one of the key characteristics of a multi-echelon system?

One of the key characteristics of a multi-echelon system is that it allows for the simultaneous generation of recommended safety stock levels for multiple parts. This feature is critical because it acknowledges the interdependencies within the supply chain where various components and parts are related and impact each other.

In a multi-echelon setup, inventory decisions are made by considering the entire supply chain rather than treating each part in isolation. This leads to more optimized inventory levels as it balances the safety stock across different locations and parts, improving service levels while minimizing costs.

This approach is particularly effective because it allows the system to respond to varying demand and supply scenarios more dynamically, which is crucial for maintaining efficiency and responsiveness in complex supply chains.