Inventory Management: Safety Stock Calculation and Control / Buffer Stock Calculation
Duration: 2h 25m | Video: .MP4 1280x720, 30 fps(r) | Audio: AAC, 48000 Hz, 2ch | Size: 1.16 GB Genre: eLearning | Language: English Optimize your Supply Chain Safety Stock / Buffer Stock. Simple to Advanced Methods. Reduce Costs and Risk in your Business Operations.
What you'll learn How to Calculate Safety Stock Inventory Dynamics - how to Control your Inventory Levels over time to make Better Decisions Alternative Approaches to holding Safety / Buffer Stock Use Statistics to Model your Lead Time Demand Why Bond cant eat Lobster….. Super Simple to Super Detailed Methods Demand and Lead Time Management to Reduce your Need for so much Safety Stock Quantify the Probability of you having a Stockout in a given period of time Determine the Optimum "Service Level" for your Inventory
Requirements High School Maths (Age 17 ish) Basic Microsoft Excel A desire to save a ton of money through your robust inventory management! High tolerance for dubious humour
Description This MBA style course prepares and empowers you to calculate and control your Safety Stock. A crucial area of Inventory Management. The eternal question: How to balance the risk of stock-outs with the quantity of safety stock inventory held?… We cover 3 methods to calculate your Safety Stock - from super simple to advanced statistics: Method 1: Number of Days of Safety - A fast and very basic method to get a quick decision Method 2: HiHi-AvAv (my own name for a very established method ;) Finding the difference between our high "Lead Time Demand" and the average to determine the level of cover we want from periods of high demand during a slow replenishment lead time. Method 3 : Statistical Method - The most rigorous method. We model our "Lead Time Demand" as a "Normal Distribution", determine our desired "Service Level" (acceptable risk of a stockout) and use a little help from some excel formulas to calculate our required Safety Stock and Re-Order Point quantity. Course Sections: 1. Inventory Control Introduction 2. Safety Stock Background 3. Inventory Dynamics 4. Simple Safety Stock Calculations 5. Calculating Safety Stock using Statistics 6. Getting Your Data 7. Assumptions and Limitations of the Statistical Method 8. Fixed Lead Time, Variable Demand: Method 3 Continued 9. Variable Lead Time and Demand: Method 3 Continued 10. Choosing your Service Level - Your Tolerance for Risk 11. Probability of a Stockout Over Time - Calculating Risk 12. Optimizing Safety Stock Levels 13. Conclusion 14. Bonus and Appendix This course is for dedicated operations manager, the ambitious procurement professionals, the striving logistics supervisors, hands-on production planners and the practical business optimization analysts. Remove the guesswork and add structure to your crucial safety stock decisions. Take control of your inventory management to have and "impact" and "improve" your business operations - manufacturing, services, industrial operations and production. Equip yourself to take a new leading role in your workplace - improving your processes, systems & business / organization. Quantify your risk, calculate your inventory requirements and articulate your method - removing the guesswork and fearful overstocking Downloadable Summary PDF Documents - throughout the course Almost all businesses have inventory: retail stores, factories, hospitals, hotels, car repair, warehousing, logistics and more - this means we all have to decide how much to hold and when to place an order from the suppliers for more. Place the order too late and, with a little extra demand than usual, you might stockout! Carry too much inventory and you pay for it in holding and financing costs every day, quietly sucking the profit from your business and crippling your cashflow and investment opportunities. Having enough stock available whilst minimising costs and risk is the fundamental balance that can determine your business's success. Getting a strong control and continuously improving your business operations is essential to remain competitive, improving profitability, improving customer experience and customer satisfaction, reducing costs and improving delivery. Without a solid grasp of safety stock and methods of calculation; no operations manager, can competently or confidently manage their risk without excessive costs. Be the one bringing clarity and structure to this most crucial decision! Specific Topics Covered in the Course: Why we need Safety Stock Consequences of Stockouts Costs of Inventory Inventory Dynamics Quick Calculations of Safety Stock Rigorous Statistical Method to calculate Safety Stock How to Model your "Lead Time Demand" How to Determine your own desired "Service Level" What the Probability of having a Stockout in a given period of time How we can Reduce our Need for Safety Stock Alternatives to holding Safety Stock Take control! Boost your career and your business! Start learning today! FULL COURSE CONTENTS: 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? 4. Much Obliged! Safety Stock Background 5. Supply Chain Trade Offs - Risk and Consequences of Stock-outs 6. Supply Chain Trade Offs - Costs of Inventory Inventory Dynamics 7. Basic Inventory Dynamics - Introduction 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 Simple Safety Stock Calculations 12. Safety Stock Calculations - Introduction13. 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 Calculating Safety Stock: Method 3: Statistical Method 21. Service Level and Statistical Distributions 22. Introduction to the Statistical Method 23. Service Levels and Statistical Variation 24. Normal Distribution Modelling 25. Service Level Definition 26. 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. 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 Getting Your Data 39. Getting your Data - Introduction 40. Finding the "Mean" and "Standard Deviation" from your Data Assumptions and Limitations of the Statistical Method 41. Assumptions and Limitations of Method 3 Fixed Lead Time, Variable Demand: Method 3 Continued 42. Different Input Data- Introduction 43. Calculating Safety Stock: Fixed Lead Time, Variable Demand 44. Calculating Safety Stock: Fixed Lead Time, Variable Demand - Example Variable Lead Time and Demand: Method 3 Continued 45. Variable Lead Time and Demand - Method and Example 46. Variable Lead Time and Demand - Question and Answer 47. Rounding Up or Down?... - Costs $60k! 48. Which Formula to Use? Summary Choosing your Service Level - Your Tolerance for Risk 49. Choosing your Service Level - Introduction 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 Probability of a Stockout Over Time - Calculating Risk 54. What's the Probability of a Stockout? - Introduction 55. What's the Probability of a Stockout? - Excel Tool Optimizing Safety Stock Levels 56. When to Review and Optimize your Safety Stock 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 Conclusion 61. Wrap Up 62. Conclusion Bonus and Appendix 63. What's Next- Further Reading 64. My Other Courses 65. How to Get Your Certificate 66. Hide Your Nuts! My goodness did you read allllll that?! Time to get to the videos! :) See you on the inside! Laurence
