From the course: Excel Supply Chain Analysis: Solving Inventory Problems

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Challenge: Analyze a continuous review inventory problem

Challenge: Analyze a continuous review inventory problem - Microsoft Excel Tutorial

From the course: Excel Supply Chain Analysis: Solving Inventory Problems

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Challenge: Analyze a continuous review inventory problem

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- [Instructor] In chapter four of this course, I described how to work with continuous inventory review strategies, and in this movie, I would like to challenge you to solve a practice problem. In a continuous service problem, you assume that your company wants to review inventory levels continuously. You want to offer a specific level of service with no stockouts for orders. In other words, you might want to ensure that 90% of customers who come into your store will be able to order without the product being out of stock. To do that, you need to calculate the safety factor based on the critical ratio, and from there, calculate the stock level that triggers a reorder. We'll have three segments to this solution. The first is to create a plan. Review the techniques taught in chapter four if you're unsure of how to proceed. Secondly, do the practice and complete the worksheet and equations on your own, and then watch the solution video to see how I would do it. And finally, play around…

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