In accordance with the teachings described herein, systems and methods are provided for optimizing inventory in a multi-echelon inventory distribution network having at least a first echelon and a second echelon. An example method may include the steps of: receiving information identifying an inventory pool that includes at least two inventory locations within the first or second echelons; determining inventory excesses or shortages at inventory locations within the inventory pool; determining an inventory transshipment plan for transferring inventory between two or more of the inventory locations in the inventory pool based at least in part on the inventory excesses or shortages; and determining an inventory replenishment plan for replenishing inventory at one or more inventory locations in the first echelon from one or more primary supply locations in the second echelon, the inventory replenishment plan being based at least in part on the inventory excesses or shortages and accounting for any inventory transfers identified in the inventory transshipment plan.
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