FreeSupply Chain · Wholesale Distribution
Reorder point and safety stock
Safety stock and reorder point for a target service level, with demand and lead-time variability.
Free for the data scientist and supply chain planner roles. No account needed.
Reorder point and safety stockForge by Norventus
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Today's PO line rounded to cases, the cost of carrying the safety stock, the fill rate it really gives, and the cheapest service level once shortages are priced. Numbers in the result and in the plain-words read point here.
- 1ESD.260J Logistics Systems, lecture 11: inventory management with probabilistic demand and safety stockGuideMIT OpenCourseWareLecture slides on reorder points and safety stock when demand is uncertain, and on the difference between a cycle service level and the share of demand filled from stock.
- 2How Many Parts to Make at Once (F. W. Harris, 1913, reprinted in Operations Research 38(6), 1990)StudyOperations Research (INFORMS), via IDEAS/RePEcThe original economic order quantity paper. Use it to set the usual order quantity that drives how many replenishment cycles, and so how many stock-out chances, you have a year.
- 3H.15 Selected Interest RatesDataBoard of Governors of the Federal Reserve SystemCurrent market interest rates. The capital part of your carrying cost starts from what money costs you; add storage, insurance and shrink on top.
- 4Monthly Wholesale Trade: Sales and InventoriesDataUS Census BureauInventories-to-sales ratios for merchant wholesalers by kind of business, monthly. A yardstick for whether your stock levels sit high or low against your trade.
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Pro sheetPremiumBranch transfer vs new purchase orderCompares moving stock from another branch with buying from the vendor, including stockout days and excess from minimums.In the role plan · see an example →Pro sheetPremiumEconomic order quantity (EOQ)The order size that balances ordering and holding cost, with orders per year and annual cost.In the role plan · see an example →
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