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Inventory Optimization

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What they say
Cristyn Narciso
Cristyn Narciso
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I found this course very informative and easy to understand. I am just getting started in working with supply chains/manufacturing and enjoyed this free course.
Ankit Kumar
Ankit Kumar
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Very basic but yet an effective course. An easy explanation of different processes of a Supply Chain. The mentor has explained everything through pictures and flow charts which made it easy to understand. He has also provided the slides used in the course for later reference. Good for anyone who is new to the Supply Cain. I really wish him to create a more detailed and advanced course.
Laverne Angela Gadiah
Laverne Angela Gadiah
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Thank you for a very clear, easy to follow and concise course. It was informative and definitely on point.
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Client Requirements

Our client requested to find ways to reduce the inventory level in the warehouse, based on the type of items and forecast. In addition, they would also like to reduce the overall cost of operations. Finally, standards for each item should be made to ensure that the inventory level of each item is optimal. 

Our Methodology

In order to achieve our client’s goals, we first classify the list of products into 3 different classes using ABC analysis. Then, we further analyze the current stock level using Pareto and the Stock Balance index. From this analysis, we select the products for monitoring.  Next, we define and establish the standards for the inventory level of each item. So things like reorder point, safety stock, and lead time were defined.

Finally, a monitoring plan was created using an I/O diagram for the inventory level.

The Outcomes

There are different outcomes obtained. The ABC analysis with the Pareto chart, stock balance index, the action plan for the different classes of products, the reorder point, safety stock, lead time, and finally, the estimated savings analysis were obtained.


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