Browse MBAs SECTION 7: Operations & Supply Chain Management

The Inventory Optimizer

4 fill-in slots · from The AI Prompt Handbook for MBAs

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The Inventory Optimizer

Optimise inventory for this item/business — enough to serve, not so much
it ties up cash.

The item(s): [DESCRIBE]
Demand: [AVERAGE AND VARIABILITY]
Costs: [UNIT COST, ORDERING/SETUP COST, HOLDING COST %]
Lead time and its variability: [DESCRIBE]
Target service level: [E.G. 95%]

Provide:
1. The economic order quantity (how much to order at once) with the maths
2. The reorder point and the safety stock for the service level
3. The trade-off between service level and holding cost
4. Which items deserve the most attention (ABC analysis logic)
5. The cash currently tied up and what optimisation would release

Show the calculations and flag the assumptions the answer is sensitive to.

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