What inventory data should I learn to interpret before starting a supply chain degree?
Before starting a supply chain degree, learn to read inventory records and interpret stock on hand, demand, usage, orders, receipts, lead times, and stockouts. Practise calculating inventory turnover, days of supply, reorder points, safety stock, service levels, carrying costs, and the effects of inaccurate or obsolete stock data. Basic spreadsheet skills are also valuable.
Key points
- Understand the difference between physical stock, available stock, allocated stock, and stock on order.
- Learn how demand variability and supplier lead time affect safety stock and replenishment decisions.
- Review ABC classification, cycle counting, inventory accuracy, and the financial cost of holding inventory.
- Practise checking data quality, units of measure, time periods, and the assumptions behind forecasts and calculations.
Things to check
- The emphasis on particular measures and software depends on the degree and its modules, so check the relevant course description or introductory materials.