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. Probability of a Stockout Over Time - Calculating Risk Choosing your Service Level - Your Tolerance for Riskġ1. Variable Lead Time and Demand: Method 3 Continuedġ0. Fixed Lead Time, Variable Demand: Method 3 Continuedĩ. Assumptions and Limitations of the Statistical MethodĨ. Calculating Safety Stock using Statisticsħ. 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.ĥ. Method 3 : Statistical Method - The most rigorous method. 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 1: Number of Days of Safety - A fast and very basic method to get a quick decision We cover 3 methods to calculate your Safety Stock - from super simple to advanced statistics: The eternal question: How to balance the risk of stock-outs with the quantity of safety stock inventory held?. This MBA style course prepares and empowers you to calculate and control your Safety Stock.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |