# Thread: Need help with demand planning / inventory analysis (safety stocks, reordering, etc)

1. ## Need help with demand planning / inventory analysis (safety stocks, reordering, etc)

Hi there! Getting stuck on a problem - could use the help.. this is about demand planning / safety stock type information. Can you tell me your assumptions? I tried using the safety stock formula but was having trouble because I don't have enough information...? Maybe I'm thinking of this the wrong way. Help would be appreciated!

 1) What is the recommended safety stock given the known lanyard data? 2) What is the recommended minimum and maximum quantity threshold for reordering? Why? 3) Assuming overseas pricing, how many more lanyards were sold last week vs the prior week? 4) A cross-functional team alerts you that in 14 days there will be an event leading to a huge spike in orders, up to 85,000 lanyards per week for at least 3 weeks. Please validate when and how (overseas or domestic) the next orders should to be placed to cover the event, ensure zero out of stocks and maintain lowest costs
 Lanyard Data Set Initial On Hand Inv  168,025 Cost per unit (domestic) $0.55 Cost per unit (overseas)$ 0.95 Domestic Lead Time 30 days Overseas Lead Time 90 days Average weekly sales growth 0.98% Last weeks sales  8,250 Prior weeks sales $7,700 2. ## Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e Originally Posted by tzengste Hi there! Getting stuck on a problem - could use the help.. this is about demand planning / safety stock type information. Can you tell me your assumptions? I tried using the safety stock formula but was having trouble because I don't have enough information...? Maybe I'm thinking of this the wrong way. Help would be appreciated! 1) What is the recommended safety stock given the known lanyard data? 2) What is the recommended minimum and maximum quantity threshold for reordering? Why? 3) Assuming overseas pricing, how many more lanyards were sold last week vs the prior week? 4) A cross-functional team alerts you that in 14 days there will be an event leading to a huge spike in orders, up to 85,000 lanyards per week for at least 3 weeks. Please validate when and how (overseas or domestic) the next orders should to be placed to cover the event, ensure zero out of stocks and maintain lowest costs  Lanyard Data Set Initial On Hand Inv$ $168,025 Cost per unit (domestic)$ 0.55 Cost per unit (overseas) $0.95 Domestic Lead Time 30 days Overseas Lead Time 90 days Average weekly sales growth 0.98% Last weeks sales$ $8,250 Prior weeks sales$ 7,700
There's a whole lotta possible domestic/overseas combos, such as:
17 * .55 + 176858 * .95 = 168025 = inventory

Are you trying to find a particular one....like domestic : overseas = 65 : 35

3. ## Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e

Hey! So I used an assumption of 80% domestic, 20% overseas.

4. ## Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e

Originally Posted by tzengste
Hey! So I used an assumption of 80% domestic, 20% overseas.
WHERE d'hell is that stated in the problem?

.80*.55 + .20*.95 = .63 = cost

Can anything else be changed in your problem, to simplify it?

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