Effective inventory management is the backbone of any successful business. In this video, we dive deep into the 7 critical inventory parameters you must master to optimize your operations. Whether you're a small business owner, a supply chain manager, or an entrepreneur, understanding these concepts will help you avoid stockouts, minimize holding costs, and improve your cash flow.
What You'll Learn:
Lead Time: Understand the importance of lead time and how to measure it effectively.
Safety Stock: Learn how to calculate the right amount of buffer stock to protect against demand variability.
Reorder Point: Discover the best time to reorder inventory to prevent stockouts.
Economic Order Quantity (EOQ): Find the ideal order size to minimize costs.
Lot Size: Optimize your production efficiency by setting the right lot size.
Min-Max Levels: Set guardrails to manage your inventory within optimal limits.
Days of Supply: Determine how many days of sales your current inventory can cover.
Why This Matters:
Mastering these inventory parameters will not only streamline your operations but also give you the flexibility to adapt to changes in demand and supply. Regularly reviewing these parameters ensures your business is always ready to meet customer needs without tying up unnecessary capital in excess inventory.
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