Decision Atlas
INV

Inventory

How much stock to hold, where to hold it, and what it protects you from.

11 stops, 11 ready to read

  1. Stop 1

    Why inventory exists

    Cycle, safety, pipeline and anticipation stock, and what each one costs you to hold.

    3 levels, 12 min in full

  2. Stop 2

    How much to order: EOQ

    Balancing the cost of ordering against the cost of holding stock to find the order size with the lowest total cost.

    3 levels, 12 min in full

  3. Stop 3

    Safety stock & reorder points

    How big a buffer each item needs, when to reorder, and how to say it in days of supply.

    3 levels, 21 min in full

  4. Stop 4

    Service levels: CSL vs fill rate

    Two different meanings of “95% service”, and why the difference changes how much stock you need.

    3 levels, 11 min in full

  5. Stop 5

    The newsvendor model

    How much to stock when you get one shot and leftovers lose their value.

    3 levels, 11 min in full

  6. Stop 6

    Inventory segmentation (ABC-XYZ)

    Sorting items by value and predictability so each group gets a policy that fits, instead of one blanket rule.

    3 levels, 10 min in full

  7. Stop 7

    Risk pooling & centralization

    Why combining stock points shrinks the total buffer, and what you give up in return.

    3 levels, 9 min in full

  8. Stop 8

    Multi-echelon inventory (MEIO)

    Placing buffers across plant, warehouse and store as one system, instead of letting every site protect itself.

    3 levels, 11 min in full

  9. Stop 9

    Replenishment & deployment (DRP)

    When each warehouse should be refilled and by how much, and where available stock goes when there isn't enough.

    3 levels, 11 min in full

  10. Stop 10

    Slow-moving & obsolete stock

    Spotting stock that has stopped moving before it loses its value, and choosing the least costly way out.

    3 levels, 11 min in full

  11. Stop 11

    Postponement

    Holding generic stock and making the final version only when real demand is known.

    3 levels, 9 min in full Also on NET Network design

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Safety stock covers the surprises while you wait for a delivery. It grows with the square root of lead time, not with lead time itself.

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