Revenue Execution Manager
Posted: Wed Dec 18, 2024 5:16 am
Safety stock is the core of inventory planning. Excess inventory: Inventory that exceeds the turnover inventory and safety stock but can be consumed within a certain period of time. For example, in some industries, excess inventory refers to inventory that can be consumed within one month. Risk inventory: The remaining part of the overall inventory, that is, inventory that has a large risk and is difficult to digest in the short term, and can easily create bad debts. Our goal is to have enough turnover inventory and safety stock to respond to market demand, but try to eliminate excess inventory and risk inventory.
For safety stock, its level depends on iran number whatsapp three factors, demand uncertainty, supply uncertainty, and service level requirements. Use agents to build three lines of defense in the supply chain. The more stable demand, the less safety stock, the less stable demand, the more safety stock. Imagine, if a store sells pieces steadily every day, with a maximum of one piece fluctuation, then only one piece safety stock is enough. But if the store sells units today and units tomorrow, it definitely needs more safety stock to cope with it. What are the factors that have a significant impact on demand? The first category is environmental factors, such as for offline stores, the flow of passengers decreases significantly on rainy days, the demand fluctuation caused by environmental factors is relatively large and usually comes suddenly and is difficult to predict.
The second category is holiday and promotion factors. During major holidays, anniversaries, and discount events, the demand usually increases, but these factors can be predicted in advance for early stocking. The third category is competition factors, for example, the same type of stores have opened nearby, which will divert a large amount of offline traffic and we need to try to make the impact of competition relatively slow; The fourth category is that users' needs and preferences have changed, which means that changes in group preferences cannot be sudden. There are also unexpected factors, such as sudden hot spots or negative public opinion, which can cause large fluctuations in demand.
For safety stock, its level depends on iran number whatsapp three factors, demand uncertainty, supply uncertainty, and service level requirements. Use agents to build three lines of defense in the supply chain. The more stable demand, the less safety stock, the less stable demand, the more safety stock. Imagine, if a store sells pieces steadily every day, with a maximum of one piece fluctuation, then only one piece safety stock is enough. But if the store sells units today and units tomorrow, it definitely needs more safety stock to cope with it. What are the factors that have a significant impact on demand? The first category is environmental factors, such as for offline stores, the flow of passengers decreases significantly on rainy days, the demand fluctuation caused by environmental factors is relatively large and usually comes suddenly and is difficult to predict.
The second category is holiday and promotion factors. During major holidays, anniversaries, and discount events, the demand usually increases, but these factors can be predicted in advance for early stocking. The third category is competition factors, for example, the same type of stores have opened nearby, which will divert a large amount of offline traffic and we need to try to make the impact of competition relatively slow; The fourth category is that users' needs and preferences have changed, which means that changes in group preferences cannot be sudden. There are also unexpected factors, such as sudden hot spots or negative public opinion, which can cause large fluctuations in demand.