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Safety Stock Calculation: Inventory Control

Inventory Control Introduction
1. Benefits of Good Safety Stock Inventory Management
2. Bond’s Lobster Story
3. What is Safety Stock – Why do we Need Buffer Stock?
Safety Stock Supply Chain Background
4. Supply Chain Trade Offs – Risk and Consequences of Stock-outs
6. Supply Chain Trade Offs – Costs of Inventory
7. Basic Inventory Dynamics – Introduction
Inventory Dynamics
8. Basic Inventory Dynamics – Sawtooth
9. Re-Order Point and Alternatives
10. Purchasing Order Quantity Choices
11. How much Safety Stock? – Procurement’s Problem Question
12. Safety Stock Calculations – Introduction
Simple Safety Stock Calculations - Simple Inventory Control
13. Method 1: Simple Inventory Control Formula: # Days of Safety
14. Method 1: Practice Question : # Days of Safety
15. Method 2: HiHi-AvAv – Protecting Against the Worst Case
16. Method 2: HiHi-AvAv – Explanation
17. Method 2: HiHi-AvAv – Practice 1 & Answer
18. Method 2: HiHi-AvAv – Practice 2
19. Method 2: HiHi-AvAv – Practice 2 – 2nd round
20. Method 2: HiHi-AvAv – Summary
21. Method 3: Service Level and Statistical Distributions
Calculating Safety Stock using Statistics
22. Method 3: Introduction to the Statistical Method
23. Method 3: Service Levels and Statistical Variation
24. Normal Distribution Modelling
25. Service Level Definition
26. Method 3: Statistical Method – High Level Overview
27. Jumping Ahead – A quick look
28. Need to Refresh your Probability Knowledge?
29. Normal Distribution Introduction
30. Normal Distributions and Standard Deviations
31. Lead Time Demand as a Normal Distribution
32. Representing Service Level on the Bell Curve
33. Method 3: Steps Overview
34. How Many Standard Deviations of Safety Stock
35. Intermediate Practice Question
36. Safety Stock in Retail – Example 2
37. Alternative Formula =norm.inv()
38. Working Backwards to find your Service Level
39. Getting your Data – Introduction
Getting Your Data - Finding your Mean and Standard Deviation
40. Finding the “Mean” and “Standard Deviation” from your Data
41. Assumptions and Limitations of Method 3
Assumptions and Limitations of the Statistical Method
42. Different Input Data- Introduction
Fixed Lead Time, Variable Demand: Method 3 continued
43. Calculating Safety Stock: Fixed Lead Time, Variable Demand
44. Calculating Safety Stock: Fixed Lead Time, Variable Demand – Example
45. Variable Lead Time and Demand – Method and Example
Variable Lead Time and Demand: Method 3 continued
46. Variable Lead Time and Demand – Question and Answer
47. Rounding Up or Down?… – Costs $60k!
48. Which Formula to Use? Summary
49. Choosing your Service Level – Introduction
Choosing your Service Level - Your Tolerance for Risk
50. Service Level Definition: Recap
51. What Factors should Influence how “Safe” we want to be??
52. Marginal Analysis – Choosing your Service Level
53. Marginal Analysis – Example
54. What’s the Probability of a Stockout? – Introduction
Probability of a Stockout Over Time - Calculating Risk
55. What’s the Probability of a Stockout? – Excel Tool
56. When to Review and Optimize your Safety Stock
Optimizing Safety Stock Levels - Inventory Management
57. Reducing the Need for Purchasing Safety Stock
58. Demand Management to Reduce Safety Stock
59. Lead Time Management to Reduce Safety Stock
60. Alternatives to Safety Stock – Other Actions
61. Wrap Up
Conclusion
62. Conclusion
63. What’s Next– Further Reading
Bonus and Appendix
65. Hide Your Nuts!
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56. When to Review and Optimize your Safety Stock

Safety Stock Calculation: Inventory Control 56. When to Review and Optimize your Safety Stock
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