Inventory Optimization Modeling: Safety Stock, Service Levels & Multi-Echelon Planning Training Course

Goes beyond inventory control to quantitative modeling: safety stock, service level targets, reorder policies, and multi-echelon stock across a network.

IWM · Inventory, Warehousing & Materials ManagementAll Levels#3168ClassroomEnglish , Arabic

Duration

5 Days

Download Brochure View Upcoming Dates

Free substitution at any time · 30+ days' notice: full refund minus 10%. Cancellation policy

Sectors:Procurement, Contracts & Supply ChainCategories:Inventory, Warehousing & Materials Management

Course Overview

The Inventory Optimization Modeling: Safety Stock, Service Levels & Multi-Echelon Planning Training Course equips inventory planners, supply chain planners, materials managers, and supply chain analysts with the quantitative methods needed to decide how much stock to hold, where to hold it, and why. Every organization balances the cost of holding inventory against the cost of running out, and many still set stock levels by habit, by rules of thumb, or by a single number of days of cover applied to every item. The course focuses on quantitative modeling rather than on the fundamentals of inventory management and control or on end-to-end supply chain planning. It assumes participants already know inventory types, costs, and classification, and it moves on to the models behind sound stock decisions. Participants measure demand variability and forecast error, calculate safety stock for different service level definitions, set reorder points and order quantities under continuous and periodic review, and handle items with intermittent or slow-moving demand where standard formulas break down. The final part of the program extends these models from a single location to a network. Participants examine how stock held at a central warehouse protects regional sites, how lead times and variability travel through a multi-echelon network, and how to compare options using trade-off curves and simple simulation. The methods work in spreadsheets, so participants can build and test them without specialist software, and they learn how planning systems apply the same logic. Results always depend on data quality and on how consistently the policies are applied. The course is delivered through worked examples, spreadsheet modeling exercises, case data from distribution and maintenance environments, and a final workshop. Participants leave with a safety stock calculator, a service level segmentation by item class, reorder policy templates, a multi-echelon comparison model, and an inventory policy review they can adapt to their own organizations.

Learning Objectives

Explain the trade-off between holding cost, ordering cost, and the cost of stockouts in quantitative terms.
Measure demand variability and forecast error and use them as inputs to inventory models.
Distinguish service level definitions, including cycle service level and fill rate, and choose between them.
Calculate safety stock for variable demand, variable lead time, and both together.
Set reorder points and order quantities under continuous review policies.
Design periodic review policies and calculate order-up-to levels.
Segment items by value, variability, and criticality and set differentiated service level targets.
Model intermittent and slow-moving demand where standard formulas do not apply.
Analyze how stock at central and regional locations interacts in a multi-echelon network.
Compare inventory options using trade-off curves and simple simulation.
Build inventory models in spreadsheets and test them against historical data.
Explain how planning systems apply inventory models and what parameters they need.
Prepare an inventory policy review that sets out recommended changes and their rationale.

Who Should Attend

This course is designed for inventory planners, supply chain and demand planners, materials and spare parts managers, warehouse and distribution managers, and supply chain analysts who set or review stock levels and reorder policies. It is equally relevant for procurement managers who agree lead times and order quantities with suppliers, maintenance planners responsible for critical spares, and finance staff who review working capital tied up in inventory. Planning system administrators who maintain inventory parameters will also benefit. Professionals in manufacturing, oil and gas, utilities, mining, healthcare and pharmaceutical supply, retail and distribution, and government warehousing will find the course directly applicable. Comfort with spreadsheets and basic statistics is helpful. It is particularly valuable for participants who already understand inventory fundamentals and want to move from rules of thumb to quantitative policies, and for organizations reviewing stock levels across several warehouses or sites.

Learning Outcomes

By the end of this course, participants will be able to:
Quantify the trade-off between holding, ordering, and stockout costs.
Measure demand variability, forecast error, and lead time variability from historical data.
Choose a suitable service level definition and explain its consequences.
Calculate safety stock for variable demand, variable lead time, and both together.
Segment items and set differentiated service level targets.
Set reorder points, order quantities, and order-up-to levels for different review policies.
Apply suitable models to intermittent and slow-moving items.
Analyze stock positioning between central and regional locations across a multi-echelon network.
Compare inventory options using trade-off curves and simple simulation.
Build and test inventory models in spreadsheets.
Specify the parameters planning systems need and how to maintain them.
Prepare an inventory policy review with recommendations, assumptions, and limitations.

Course Outline

Course Outline:

Day 1

The Economics of Inventory and Demand Variability

Holding, ordering, and stockout costs and the trade-off between them
Cycle stock, safety stock, and pipeline stock in quantitative terms
Measuring demand variability and forecast error
Lead time and lead time variability as model inputs
Preparing and cleaning demand history for modeling
Practical application: participants profile the demand and lead time data of a case item set

Day 2

Safety Stock and Service Levels

Service level definitions: cycle service level and fill rate
Safety stock under variable demand, variable lead time, and both
The cost of higher service levels and the shape of the trade-off curve
Segmenting items by value, variability, and criticality
Setting differentiated service level targets by item class
Practical application: participants build a safety stock calculator and a service level segmentation

Day 3

Reorder Policies and Order Quantities

Continuous review: reorder point and order quantity
Periodic review: review interval and order-up-to level
Economic order quantity and its practical limits
Minimum order quantities, pack sizes, and supplier constraints
Intermittent and slow-moving demand: alternative models for spares
Practical application: participants design reorder policies for fast-moving and slow-moving items

Day 4

Multi-Echelon Inventory Planning

Inventory in networks: central warehouses, regional sites, and points of use
How lead times and variability travel through a multi-echelon network
Where to position stock: centralization, pooling, and its limits
Comparing network options with trade-off curves
Simple simulation to test policies before applying them
Practical application: participants compare stocking options for a two-level distribution network

Day 5

Implementation, Systems, and Policy Review

How planning systems apply inventory models and the parameters they need
Monitoring policy performance: service, stock levels, and exceptions
Reviewing parameters as demand, lead times, and costs change
Agreeing inventory policies with operations, procurement, and finance
Presenting results honestly, including assumptions and data limitations
Final workshop: participants prepare an inventory policy review for their own organizations

Upcoming Dates

City	Dates	Price per Participant	Early Bird
Kuala LumpurScheduled	9 – 13 Nov 2026	€4,400	—	Select Download Brochure
LisbonScheduled	16 – 20 Nov 2026	€5,400	—	Select Download Brochure
MadinahScheduled	23 – 27 Nov 2026	€4,200	—	Select Download Brochure
LondonScheduled	23 – 27 Nov 2026	€5,600	—	Select Download Brochure
MadridScheduled	30 Nov – 4 Dec 2026	€5,400	€4,860until 9 Nov	Select Download Brochure
ManamaScheduled	7 – 11 Dec 2026	€4,700	€4,230until 16 Nov	Select Download Brochure
MakkahScheduled	7 – 11 Dec 2026	€4,200	€3,780until 16 Nov	Select Download Brochure
MarbellaScheduled	14 – 18 Dec 2026	€5,400	€4,860until 23 Nov	Select Download Brochure
MuscatScheduled	21 – 25 Dec 2026	€5,300	€4,770until 30 Nov	Select Download Brochure
OnlineScheduled	27 – 31 Dec 2026	€1,700	€1,530until 7 Dec	Select Download Brochure
ParisScheduled	28 Dec 2026 – 1 Jan 2027	€5,700	€5,130until 7 Dec	Select Download Brochure
RiyadhScheduled	4 – 8 Jan 2027	€4,200	€3,780until 14 Dec	Select Download Brochure
AbujaScheduled	11 – 15 Jan 2027	€5,100	€4,590until 21 Dec	Select Download Brochure
AccraScheduled	11 – 15 Jan 2027	€5,100	€4,590until 21 Dec	Select Download Brochure
AmmanScheduled	17 – 21 Jan 2027	€3,100	€2,790until 28 Dec	Select Download Brochure
AmsterdamScheduled	25 – 29 Jan 2027	€5,400	€4,860until 4 Jan	Select Download Brochure
BakuScheduled	25 – 29 Jan 2027	€4,800	€4,320until 4 Jan	Select Download Brochure
BangkokScheduled	1 – 5 Feb 2027	€6,100	€5,490until 11 Jan	Select Download Brochure
BarcelonaScheduled	8 – 12 Feb 2027	€5,400	€4,860until 18 Jan	Select Download Brochure
BeirutScheduled	14 – 18 Feb 2027	€4,000	€3,600until 25 Jan	Select Download Brochure
CairoScheduled	14 – 18 Feb 2027	€3,300	€2,970until 25 Jan	Select Download Brochure
CasablancaScheduled	22 – 26 Feb 2027	€4,300	€3,870until 1 Feb	Select Download Brochure
DammamScheduled	28 Feb – 4 Mar 2027	€4,200	€3,780until 8 Feb	Select Download Brochure
DohaScheduled	28 Feb – 4 Mar 2027	€4,400	€3,960until 8 Feb	Select Download Brochure
DubaiScheduled	7 – 11 Mar 2027	€4,400	€3,960until 15 Feb	Select Download Brochure
ErbilScheduled	14 – 18 Mar 2027	€3,100	€2,790until 22 Feb	Select Download Brochure
GenevaScheduled	15 – 19 Mar 2027	€6,300	€5,670until 22 Feb	Select Download Brochure
IstanbulScheduled	22 – 26 Mar 2027	€4,700	€4,230until 1 Mar	Select Download Brochure
JeddahScheduled	28 Mar – 1 Apr 2027	€4,200	€3,780until 8 Mar	Select Download Brochure
KigaliScheduled	29 Mar – 2 Apr 2027	€5,100	€4,590until 8 Mar	Select Download Brochure

Available in: Istanbul · Dubai · London · Riyadh · Doha · Amsterdam

Need more details?Chat with us on WhatsApp

Related Courses

Inventory, Warehousing & Materials Management#2217

Inventory Management & Control Training Course

Builds the skills to keep the right items in the right quantities at the right cost, using ABC, XYZ and criticality classification and inventory cost analysis.

5 Days·Classroom

View Course Request Brochure

Inventory, Warehousing & Materials Management#2218