课程: Excel Supply Chain Analysis: Solving Procurement Problems

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Calculate safety stock

Calculate safety stock

课程: Excel Supply Chain Analysis: Solving Procurement Problems

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Calculate safety stock

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- [Instructor] Kinetico never wants to run out of inventory because then they won't be able to fill customer orders. Safety stock is an essential component of inventory management that ensures we have enough inventory on hand to cover unexpected demand or supply chain disruptions. In this video, we'll walk through the steps to calculate safety stock using Excel. There are several different methods to calculate safety stock, but I'll show you one of the most common approaches. In order to use it, we'll need the following key pieces of information, lead time demand, lead time variability, demand and demand variability. These are all values that we can calculate by looking at historical data. We'll also need to determine what percentage of the time we want to have enough inventory on hand to meet our customer demand. This is called our service level. You shouldn't use a hundred percent for your service level because then you'll almost always end up with too much safety stock. Your…

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