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CALCULATIONS TO START SIMULATION |
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Daily Demand, No Forecast |
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PRODUCT |
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DATA |
INPUTS |
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Description |
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(Note: All days are in business days) |
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Units |
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MD |
Average Monthly Demand in units based on history |
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2280 |
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Smd |
Std Dev of Monthly Demand from history (use if no forecast) |
983 |
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Sdd |
Std Dev of daily demand (from history) in units |
|
165.33 |
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LT |
Expected Lead Time (from history) in days |
|
15 |
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Slt |
Std Dev of lead time (from history) days |
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|
12 |
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P |
days per period (which is a month) |
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|
30.4 |
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Slt |
Service level desired (prob of not having a stockout) |
0.98 |
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Number of Days per Year |
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240 |
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Number of deliveries per year |
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22 |
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Average daily demand in units based on history |
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123.6 |
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Total Yearly Demand (from History) |
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27441 |
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Safety Stock Calculations |
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Sqrt term without Forecast
(size of one std deviation) in units |
1503 |
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Inverse Normal of desired
service level (no. of std devs needed for SS) |
2.054 |
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Safety Stock without a
Forecast (in units) |
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3088 |
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Cycle Stock Calculations |
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Typical time between
deliveries in days |
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|
10.9 |
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Typical demand between
replenishments in units |
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1348 |
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Average cycle stock (halfway
between high point & low point) units |
674 |
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Total Inventory Calculations |
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Total Inventory without a
forecast in units |
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Average Cycle stock |
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674 |
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Required Safety Stock |
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3088 |
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Average Total Inventory |
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3762 |
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Typical Turns with Forecast
(per year) |
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7.3 |
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Typical Days on Hand (business
days) |
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30.4 |
