Description

1. Objective:

Determine inventory levels that ensure the correct service level and increase the efficiency of manufacturing operations. Inventories should guarantee the continuous flow of products to subsequent stations.

2. Methodology:

Calculate the Optimal Inventory Level (OIL) by determining appropriate variation factors. Establish reorder points and Safety Stock (SS) levels.

3. Deliverable:

More accurate calculations considering deviations in both demand and supplier lead times, along with an established service level.

4. Benefits:

✅ Identify what, when, and how much material to send from the warehouse to production

✅ Increase inventory availability in warehouses

✅ Reduce the risk of obsolescence

✅ Decrease the need for overstocking