This inventory basics video will help you understand inventory management frameworks. We will help you think about inventory policies, whether something is made to stock or whether something is lean / agile, and what kind of service levels we want to keep. We'll talk a little bit about how safety stock is calculated; how different parameters are set. We'll talk about in a supply model, how we plan the inventories going forward, what we call the projected inventories. And we will discuss how we monitor such things as having too much or too little inventory, how many days of inventory should we have on hand, and more. This a framework very similar to demand planning, and we will cover these basics in this video.
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In this second session we will discuss inventory terms, replenishment strategies, ways to manage inventory, agile and lean, inventory policies and service level differentiation.
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In this session of Best Practices in Inventory Management we will discuss calculating Safety Stock. Safety Stock is stock we keep to protect ourselves from variability in demand and supply. Such examples of variability are if demand is higher than we anticipate, or a shipping container gets held up in customs, natural or geo-political disasters halts production, etc. Having safety stock and having the correct amount of safety stock will help avoid supply chain unpredictability.
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