Using Coefficient of Variation to Drive Safety Stock Related Decisions

In a previous blog post, we discussed how a high or low value of Coefficient of Variation (CV) impacts the first or second term of safety stock. Today we decided to put this to the test using real customer data - here we will discuss our findings.

By |2024-02-21T14:20:31-05:00June 29th, 2021|Arkieva Data Analysis Wing, Demand Planning, Forecasting, General Topics, Inventory Management, Safety Stock, Supply Chain|
Read More

Using Coefficient of Variation as a Guide for Safety Stocks

In one of my previous posts, I wrote about using coefficient of variation (CV) as a predictor of forecastability. In this post, I will talk about how it can be used to indicate a sensitivity of lead time towards the safety stock calculations. To quickly remind the reader first: The formula for CV = StdDev

By |2024-02-21T14:20:58-05:00September 22nd, 2015|Demand Planning, Forecasting, Inventory Management, Safety Stock, Supply Chain|
Read More

Pin It on Pinterest