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Course Description

Maintaining the "right" amount of a product in stock is a balancing act. On one hand, there's a cost associated with keeping more product in stock than you can move; on the other hand, there's the cost of not being able to meet the immediate needs of your customers or patients. Certain service-level metrics can help you find the balancing point. In this lesson, you will investigate the drivers of inventory strategy and identify two important service-level metrics. You will also explore some inventory strategies used to manage products with different life cycles and calculate service-level metrics to determine how likely your organization is to fulfill a customer, patient, or provider's request or need for a given product. In addition, you will review the concept of a "normal distribution," which is a foundational concept for understanding demand; explore the newsvendor model (a mathematical model for determining the optimal stocking quantity of a product); and use the Newsvendor Calculator, an Excel tool for determining Q*, to identify the optimal stocking quantity of a short-lifecycle product in your organization.

Benefits to the Learner

  • Calculate service-level metrics to determine how likely an organization is to fulfill a customer's request
  • Use the newsvendor model to match levels of inventory with demand in a way that maximizes profit for short-lifecycle products
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Type
self-paced (non-instructor led)
Dates
Aug 31, 2021 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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