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

Sep 2018
2
0
chicago, IL
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 growth0.98%
Last weeks sales $ $ 8,250
Prior weeks sales $ 7,700
 
Feb 2015
2,255
510
Ottawa Ontario
Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e

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 growth0.98%
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
 
Last edited:
Sep 2018
2
0
chicago, IL
Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e

Hey! So I used an assumption of 80% domestic, 20% overseas.
 
Feb 2015
2,255
510
Ottawa Ontario
Re: Need help with demand planning / inventory analysis (safety stocks, reordering, e

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?