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Inventory Management: Safety Stock Calculation and Control

Optimize your Supply Chain Safety Stock. Simple to Advanced Methods. Reduce Costs and Risk in your Business Operations
5.0
5.0/5
(22 reviews)
64 students
Created by Laurence Gartside MEng Cantab

9.9

CourseMarks Score®

10.0

Freshness

10.0

Feedback

9.1

Content

Platform: Udemy
Price: $11.99
Video: 2h 22m
Language: English
Next start: On Demand

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Detailed Analysis

CourseMarks Score®

9.9 / 10

CourseMarks Score® helps students to find the best classes. We aggregate 18 factors, including freshness, student feedback and content diversity.

Freshness Score

10.0 / 10
This course was last updated on 3/2021.

Course content can become outdated quite quickly. After analysing 71,530 courses, we found that the highest rated courses are updated every year. If a course has not been updated for more than 2 years, you should carefully evaluate the course before enrolling.

Student Feedback

10.0 / 10
We analyzed factors such as the rating (5.0/5) and the ratio between the number of reviews and the number of students, which is a great signal of student commitment.

New courses are hard to evaluate because there are no or just a few student ratings, but Student Feedback Score helps you find great courses even with fewer reviews.

Content Score

9.1 / 10
Video Score: 7.9 / 10
The course includes 2h 22m video content. Courses with more videos usually have a higher average rating. We have found that the sweet spot is 16 hours of video, which is long enough to teach a topic comprehensively, but not overwhelming. Courses over 16 hours of video gets the maximum score.
Detail Score: 10.0 / 10

The top online course contains a detailed description of the course, what you will learn and also a detailed description about the instructor.

Extra Content Score: 9.5 / 10

Tests, exercises, articles and other resources help students to better understand and deepen their understanding of the topic.

This course contains:

0 article.
12 resources.
0 exercise.
0 test.

Table of contents

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 – 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

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

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…..

This course is for

• 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

How much does the Inventory Management: Safety Stock Calculation and Control course cost? Is it worth it?

The course costs $11.99. And currently there is a 40% discount on the original price of the course, which was $19.99. So you save $8 if you enroll the course now.

Does the Inventory Management: Safety Stock Calculation and Control course have a money back guarantee or refund policy?

YES, Inventory Management: Safety Stock Calculation and Control has a 30-day money back guarantee. The 30-day refund policy is designed to allow students to study without risk.

Are there any SCHOLARSHIPS for this course?

Currently we could not find a scholarship for the Inventory Management: Safety Stock Calculation and Control course, but there is a $8 discount from the original price ($19.99). So the current price is just $11.99.

Who is the instructor? Is Laurence Gartside MEng Cantab a SCAM or a TRUSTED instructor?

Laurence Gartside MEng Cantab has created 7 courses that got 1,148 reviews which are generally positive. Laurence Gartside MEng Cantab has taught 3,569 students and received a 4.5 average review out of 1,148 reviews. Depending on the information available, Laurence Gartside MEng Cantab is a TRUSTED instructor.

More info about the instructor, Laurence Gartside MEng Cantab

Management Consultant and Coach
A tinkerer, builder, breaker and (less often with my Lego set), an improver. I like analysing processes, working out how make them better and then actually “making” them better!In my work life, I’m a freelance management consultant and coach in industrial business operations.I’ve led major industrial operations improvement projects, training and coaching programs in a wide variety of manufacturing sectors, globally. With a MEng from the “University of Cambridge”, I now focus on training and leading teams to make breakthrough improvements in their business’s performance and profit through capacity increase (without capital investment) and cost reduction.  Experienced with automotive, FMCG and high value manufacturing whilst leading large and senior client teams and embedded consultants with dozens of industrial clients.I’ve trained the operations teams of major international companies on 3 continents and led rapid improvement projects with direct savings of 10s of millions of dollars multiple times.In my courses, I aim to give you the best info, in the least time, that you can really “use” to enhance your own career and business. All wrapped up with a few goofy jokes, silly stories and inappropriate examples ;)Crack On!

9.9

CourseMarks Score®

10.0

Freshness

10.0

Feedback

9.1

Content

Platform: Udemy
Price: $11.99
Video: 2h 22m
Language: English
Next start: On Demand

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