Inventory Management

Overview

This course is for business professionals, operations managers, supply chain analysts, and anyone looking to optimize inventory processes. Inventory is a strategic asset for organizations. Effective inventory management can minimize a company’s spending while dramatically increasing its profit. In this course, you will learn to leverage data science and Microsoft Excel to manage inventory in uncertain environments, set optimal inventory levels based on customer service requirements, and calculate inventory for products with short sales cycles. By the end of this course, you will be able to: - Apply data science techniques to manage inventory effectively. - Utilize Microsoft Excel for inventory analysis and forecasting. - Determine optimal inventory levels to meet customer service goals. - Calculate inventory for products with varying demand cycles. To be successful in this course, you should have a basic understanding of business operations and familiarity with spreadsheet software.

Syllabus

Inventory Management: Demand Variability

Welcome to Module 1: Inventory Management with Steady Demand! You'll begin by understanding fundamental demand behavior and the concept of steady-state demand. We'll then explore lead time, learning how to gather crucial information from various stakeholders. By the end, you'll be able to calculate reorder points efficiently using Microsoft Excel, a vital skill for maintaining optimal inventory levels. Focus on the practical Excel demonstration to solidify your understanding.

Inventory Management with Demand Variability

Welcome to Module 2! Building on Module 1's steady demand, you'll now explore the more common challenge of demand variability. You'll identify its sources, learn effective strategies for countering it, and master lead time calculations essential for maintaining safety stock. This module is crucial for building resilient inventory management systems in dynamic business environments. Focus on understanding the practical strategies to mitigate variability.

Inventory: Strategic Tool for Customer Service

Welcome to Module 3! Here, you'll explore the crucial link between customer service level and inventory. You'll learn to calculate safety stock, a key component in maintaining your desired service levels and ensuring customer satisfaction. This module builds on our understanding of demand, showing you how to strategically use inventory to meet customer expectations. Pay close attention to the calculations, as they are vital for real-world application.

Newsvendor Model: One-Period Inventory Decisions

Welcome to Module 4! Here, you'll dive into the Newsvendor Model, a powerful tool for managing single-period products. You'll learn to calculate optimal order quantities, minimizing both underages and overages. This module builds on our earlier discussions of demand, showing you how to make critical inventory decisions for items with short sales cycles. To succeed, focus on understanding the core logic behind balancing supply and uncertain demand.