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LinkedIn Learning

Excel Supply Chain Analysis: Solving Inventory Problems

via LinkedIn Learning

Overview

Learn how to use Excel to conceptualize, set up, and solve inventory problems to minimize purchasing cost and reduce the risk and cost of stockouts.

Syllabus

Introduction
  • Solve supply chain inventory problems with Excel
  • What you should know
1. Calculating Order Size for Deterministic Demand
  • Compare setup costs and holding costs
  • Calculate an economic order quantity (EOQ)
  • Calculate orders per year and time between orders
  • Calculate effects of lead time
  • Determine increased cost of constrained purchases
  • Examine the effect of quantity discounts on cost
  • Calculate production order quantities
2. Calculating Economic Order Quantity with Back Orders
  • Describe how allowing back orders affects order quantities
  • Calculate the critical ratio
  • Calculate economic order quantity with back orders
  • Calculate reorder points for inventory policies that allow back orders
3. Analyzing Single Period (Newsvendor) Problems
  • Describe the newsvendor problem and approaches
  • Set up a worksheet to identify maximum profit
  • Fill in the worksheet and calculate profit
  • Calculate and visualize expected profit
  • Identify the optimal order quantity using marginal analysis
  • Incorporate salvage value into your analysis
4. Analyzing Continuous Review Inventory Policies
  • Describe the level of service policies
  • Calculate the base stock required for a target level of service
  • Determine the reorder point based on cycle service level
5. Practicing Inventory Problem Analysis
  • Challenge: Analyze a deterministic demand problem
  • Solution: The deterministic demand problem
  • Challenge: Analyze a back order problem
  • Solution: The back order problem
  • Challenge: Analyze a continuous review inventory problem
  • Solution: The continuous review inventory problem
Conclusion
  • Next steps

Taught by

Curt Frye

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