Help with logic for inventory replenishment levels

[Gizmo1972]

Hi,

I've recently moved into a purchasing role where the lead times are multiple months rather than days that I would be familiar with.

I'm having trouble calculating required stock stock levels and would appreciate some help.

I have data on the exact length of time it takes for the goods to arrive once shipped but is 8 weeks on average per shipment.

I can only place an order once a month. The factory then schedule this into their production run and everything is shipped over the following 4 weeks. So if I ordered 12 truck loads, the factory would ship 3 truck loads a week for 4 weeks.

When I place the order I don't know if the factory will ship from existing inventory or from a production run so I don't know when any given stock line will actually ship, just that it will ship sometime in the next 4 weeks and take about 8 weeks to arrive.

what's the best way to calculate the correct stock levels if I want to have about 2 weeks of stock on hand at all times?

Please let me know if I need to elaborate on anything

Thanks in advance

 

[James006]

Hi,

Take a look at the 6 best safety stock formulas for your Inventory :

6 Best Safety Stock Formulas On Excel | AbcSupplyChain

6 different Ways to Calculate your Safety Stock. Definition, Formulas Examples on Excel. How to Optimize your Inventory with the right Safety Stock & EOQ

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