WEBINAR: Supply Chain & Reducing the Probability of a Stock Out (Free)
Stock Out is not an option! Delivering great customer service and a positive customer experience every time begins long before a sales transaction takes place. Once we determined what our customer service delivery level policy is, then we can develop our practices and procedures to support that inventory level. This includes determining supermarket size, maximum, minimum, re-order trigger point, new order quantity and safety stock levels. Optimal inventory management is all about having what the customer wants, when and where they want it. At the same time we must balance inventory cost.
Using Statistical Methods to determine Safety Stock
Z score provides a correlation for the probability that stock levels will be available based on the variability of daily usage and lead time. Z score used in the calculation for the safety stock level provides the probability that material will be in stock during the time period between when an order is placed after the inventory level has dropped below the reorder point and the time it takes to replenish that stock to the shop floor.
This is a free webinar. Registration is required. By attending this webinar, you and your employees will earn a credit towards a corresponding class in the future.