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Inventory optimizer

Skill a5c-ai/babysitter/library/specializations/domains/business/operations/skills/inventory-optimizer

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Install
npx -y skills add a5c-ai/babysitter --skill inventory-optimizer

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Inventory management optimization skill with safety stock calculation, reorder point determination, and ABC analysis

SKILL.md

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Inventory Optimizer

Overview

The Inventory Optimizer skill provides comprehensive capabilities for optimizing inventory management. It supports ABC/XYZ classification, safety stock calculation, reorder point optimization, and service level optimization.

Capabilities

  • ABC/XYZ classification
  • Safety stock calculation
  • Reorder point optimization
  • EOQ calculation
  • Inventory turn analysis
  • Dead stock identification
  • Carrying cost analysis
  • Service level optimization

Used By Processes

  • LEAN-004: Kanban System Design
  • CAP-003: Sales and Operations Planning
  • TOC-001: Constraint Identification and Exploitation

Tools and Libraries

  • Inventory management systems
  • Optimization algorithms
  • Demand forecasting tools
  • ERP integration

Usage

skill: inventory-optimizer
inputs:
  items:
    - sku: "PART-001"
      annual_demand: 12000
      unit_cost: 25
      lead_time: 5  # days
      demand_variability: 0.15  # coefficient of variation
      holding_cost_rate: 0.25  # annual
      order_cost: 50
    - sku: "PART-002"
      annual_demand: 500
      unit_cost: 500
      lead_time: 20
      demand_variability: 0.30
      holding_cost_rate: 0.25
      order_cost: 75
  service_level_target: 0.95
  analysis_type: "comprehensive"
outputs:
  - abc_xyz_classification
  - safety_stock_recommendations
  - reorder_points
  - eoq_calculations
  - inventory_investment
  - service_level_analysis

ABC/XYZ Classification

ABC Analysis (Value)

Class% of Items% of ValueManagement
A10-20%70-80%Tight control
B20-30%15-20%Moderate control
C50-70%5-10%Simple control

XYZ Analysis (Variability)

ClassCV RangePredictabilityApproach
X0-0.5HighStatistical
Y0.5-1.0MediumMixed
Z>1.0LowManual

Safety Stock Calculation

Safety Stock = Z x Standard Deviation x Square Root(Lead Time)

Where:
- Z = Service level factor (1.65 for 95%)
- Standard Deviation = Demand variability
- Lead Time = Replenishment time

Example:
- Daily demand: 100 units
- Daily std dev: 15 units
- Lead time: 5 days
- Service level: 95% (Z = 1.65)

Safety Stock = 1.65 x 15 x sqrt(5) = 55 units

Economic Order Quantity (EOQ)

EOQ = Square Root((2 x Annual Demand x Order Cost) / Holding Cost)

Example:
- Annual demand: 12,000 units
- Order cost: $50
- Unit cost: $25
- Holding rate: 25%

Holding cost = $25 x 0.25 = $6.25

EOQ = sqrt((2 x 12,000 x 50) / 6.25) = 438 units

Reorder Point

Reorder Point = (Average Daily Demand x Lead Time) + Safety Stock

Example:
- Daily demand: 100 units
- Lead time: 5 days
- Safety stock: 55 units

Reorder Point = (100 x 5) + 55 = 555 units

Inventory Metrics

MetricFormulaTarget
Inventory TurnsCOGS / Average InventoryIndustry benchmark
Days of SupplyInventory / Daily UsagePer policy
Fill RateOrders filled from stock>95%
Carrying CostAverage Inventory x RateMinimize

Integration Points

  • ERP/inventory systems
  • Demand planning systems
  • Warehouse management
  • Procurement systems

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