Inventory Management: Safety Stock Calculation and Control

Inventory Management: Safety Stock Calculation and Control, available at $69.99, has an average rating of 4.73, with 67 lectures, based on 532 reviews, and has 2258 subscribers.

You will learn about How to Calculate Safety Stock Super Simple to Super Detailed Methods Inventory Dynamics – how to Control your Inventory Levels over time to make Better Decisions Demand and Lead Time Management to Reduce your Need for so much Safety Stock Alternative Approaches to holding Safety / Buffer Stock Quantify the Probability of you having a Stockout in a given period of time Use Statistics to Model your Lead Time Demand Determine the Optimum "Service Level" for your Inventory Why Bond cant eat Lobster….. This course is ideal for individuals who are Supply Chain Managers. Working in Operations, Manufacturing or Service sectors, Production and Industry or Purchasing / Procurement, Logistics & Customer Relationship Managers or Financial Controllers, Accountants, Business Analysts & Consultants or Small Business Owners & Operations Managers or Ambitious Self-Starters who want to have a Bigger Impact at work, Improve Things and Get Noticed or People working in Production, Manufacturing, Industrial Operations, Business Operations or A Desire to Become the Authority in your workplace on Business Inventory Management It is particularly useful for Supply Chain Managers. Working in Operations, Manufacturing or Service sectors, Production and Industry or Purchasing / Procurement, Logistics & Customer Relationship Managers or Financial Controllers, Accountants, Business Analysts & Consultants or Small Business Owners & Operations Managers or Ambitious Self-Starters who want to have a Bigger Impact at work, Improve Things and Get Noticed or People working in Production, Manufacturing, Industrial Operations, Business Operations or A Desire to Become the Authority in your workplace on Business Inventory Management.

Enroll now: Inventory Management: Safety Stock Calculation and Control

Summary

Title: Inventory Management: Safety Stock Calculation and Control

Price: $69.99

Average Rating: 4.73

Number of Lectures: 67

Number of Published Lectures: 67

Number of Curriculum Items: 67

Number of Published Curriculum Objects: 67

Original Price: $129.99

Quality Status: approved

Status: Live

What You Will Learn

How to Calculate Safety Stock
Super Simple to Super Detailed Methods
Inventory Dynamics – how to Control your Inventory Levels over time to make Better Decisions
Demand and Lead Time Management to Reduce your Need for so much Safety Stock
Alternative Approaches to holding Safety / Buffer Stock
Quantify the Probability of you having a Stockout in a given period of time
Use Statistics to Model your Lead Time Demand
Determine the Optimum "Service Level" for your Inventory
Why Bond cant eat Lobster…..

Who Should Attend

Supply Chain Managers. Working in Operations, Manufacturing or Service sectors, Production and Industry
Purchasing / Procurement, Logistics & Customer Relationship Managers
Financial Controllers, Accountants, Business Analysts & Consultants
Small Business Owners & Operations Managers
Ambitious Self-Starters who want to have a Bigger Impact at work, Improve Things and Get Noticed
People working in Production, Manufacturing, Industrial Operations, Business Operations
A Desire to Become the Authority in your workplace on Business Inventory Management

Target Audiences

Supply Chain Managers. Working in Operations, Manufacturing or Service sectors, Production and Industry
Purchasing / Procurement, Logistics & Customer Relationship Managers
Financial Controllers, Accountants, Business Analysts & Consultants
Small Business Owners & Operations Managers
Ambitious Self-Starters who want to have a Bigger Impact at work, Improve Things and Get Noticed
People working in Production, Manufacturing, Industrial Operations, Business Operations
A Desire to Become the Authority in your workplace on Business Inventory Management

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 – Introduction

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

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

Course Curriculum

Chapter 1: Inventory Control Introduction

Lecture 1: Benefits of Good Safety Stock Inventory Management

Lecture 2: Bond’s Lobster Story

Lecture 3: What is Safety Stock – Why do we Need Buffer Stock?

Chapter 2: Safety Stock Supply Chain Background

Lecture 1: Supply Chain Trade Offs – Risk and Consequences of Stock-outs

Lecture 2: Much Obliged!

Lecture 3: Supply Chain Trade Offs – Costs of Inventory

Chapter 3: Inventory Dynamics

Lecture 1: Basic Inventory Dynamics – Introduction

Lecture 2: Basic Inventory Dynamics – Sawtooth

Lecture 3: Re-Order Point and Alternatives

Lecture 4: Purchasing Order Quantity Choices

Lecture 5: How much Safety Stock? – Procurement's Problem Question

Chapter 4: Simple Safety Stock Calculations – Simple Inventory Control

Lecture 1: Safety Stock Calculations – Introduction

Lecture 2: Method 1: Simple Inventory Control Formula: # Days of Safety

Lecture 3: Method 1: Practice Question : # Days of Safety

Lecture 4: Method 2: HiHi-AvAv – Protecting Against the Worst Case

Lecture 5: Method 2: HiHi-AvAv – Explanation

Lecture 6: Method 2: HiHi-AvAv – Practice 1 & Answer

Lecture 7: Method 2: HiHi-AvAv – Practice 2

Lecture 8: Method 2: HiHi-AvAv – Practice 2 – 2nd round

Lecture 9: Method 2: HiHi-AvAv – Summary

Chapter 5: Calculating Safety Stock using Statistics

Lecture 1: Method 3: Service Level and Statistical Distributions

Lecture 2: Method 3: Introduction to the Statistical Method

Lecture 3: Method 3: Service Levels and Statistical Variation

Lecture 4: Normal Distribution Modelling

Lecture 5: Service Level Definition

Lecture 6: Method 3: Statistical Method – High Level Overview

Lecture 7: Jumping Ahead – A quick look

Lecture 8: Need to Refresh your Probability Knowledge?

Lecture 9: Normal Distribution Introduction

Lecture 10: Normal Distributions and Standard Deviations

Lecture 11: Lead Time Demand as a Normal Distribution

Lecture 12: Representing Service Level on the Bell Curve

Lecture 13: Method 3: Steps Overview

Lecture 14: How Many Standard Deviations of Safety Stock

Lecture 15: Intermediate Practice Question

Lecture 16: Safety Stock in Retail – Example 2

Lecture 17: Alternative Formula =norm.inv()

Lecture 18: Working Backwards to find your Service Level

Chapter 6: Getting Your Data – Finding your Mean and Standard Deviation

Lecture 1: Getting your Data – Introduction

Lecture 2: Finding the “Mean” and “Standard Deviation” from your Data

Chapter 7: Assumptions and Limitations of the Statistical Method

Lecture 1: Assumptions and Limitations of Method 3

Chapter 8: Fixed Lead Time, Variable Demand: Method 3 continued

Lecture 1: Different Input Data- Introduction

Lecture 2: Calculating Safety Stock: Fixed Lead Time, Variable Demand

Lecture 3: Calculating Safety Stock: Fixed Lead Time, Variable Demand – Example

Chapter 9: Variable Lead Time and Demand: Method 3 continued

Lecture 1: Variable Lead Time and Demand – Method and Example

Lecture 2: Variable Lead Time and Demand – Question and Answer

Lecture 3: Rounding Up or Down?… – Costs $60k!

Lecture 4: Which Formula to Use? Summary

Chapter 10: Choosing your Service Level – Your Tolerance for Risk

Lecture 1: Choosing your Service Level – Introduction

Lecture 2: Service Level Definition: Recap

Lecture 3: What Factors should Influence how “Safe” we want to be??

Lecture 4: Marginal Analysis – Choosing your Service Level

Lecture 5: Marginal Analysis – Example

Chapter 11: Probability of a Stockout Over Time – Calculating Risk

Lecture 1: What’s the Probability of a Stockout? – Introduction

Lecture 2: What’s the Probability of a Stockout? – Excel Tool

Chapter 12: Optimizing Safety Stock Levels – Inventory Management

Lecture 1: When to Review and Optimize your Safety Stock

Lecture 2: Reducing the Need for Purchasing Safety Stock

Lecture 3: Demand Management to Reduce Safety Stock

Lecture 4: Lead Time Management to Reduce Safety Stock

Lecture 5: Alternatives to Safety Stock – Other Actions

Chapter 13: Conclusion

Lecture 1: Wrap Up

Lecture 2: Conclusion

Chapter 14: Bonus and Appendix

Lecture 1: What’s Next– Further Reading

Lecture 2: Your Certificate – How to Download, Modify & Share it – Udemy

Lecture 3: Hide Your Nuts!

Lecture 4: Extra Content – 2 Foundations of Operations Management

Lecture 5: Bonus Lecture – My Other Courses & Connection

Instructors

Laurence Gartside
Management Consultant and Coach
Rowtons Training
Level-Up Your Business Operations Fundamentals!

Rating Distribution

1 stars: 1 votes
2 stars: 6 votes
3 stars: 32 votes
4 stars: 151 votes
5 stars: 342 votes

Frequently Asked Questions

How long do I have access to the course materials?

You can view and review the lecture materials indefinitely, like an on-demand channel.

Can I take my courses with me wherever I go?

Definitely! If you have an internet connection, courses on Udemy are available on any device at any time. If you don’t have an internet connection, some instructors also let their students download course lectures. That’s up to the instructor though, so make sure you get on their good side!

Menu