Retail Inventory Planning from Udemy

This course empowers you to plan and calculate Buying Budgets to acquire inventory that enables a retailer to have sufficient stock/inventory to achieve Sales and not overburden the cash flow at a retail organization . This is a crucial element of Inventory management and supply chain management and financial planning as well.

Question of the hour: How much inventory should a retailer buy and for when to achieve sales target without burdening the business?

We cover two methods to calculate the buying budget or OTB from very simple to advanced

Method 1: OTB Tool that can be used in its simplistic form to build a topline buying budget to achieve a certain sales plan

Method 2: SSI Tool to build advanced buying budgets that spans over a period of time rather than a point in time and factors in certain elements of inventory management that are crucial to getting a proper flow of stock.

As we approach these two methods, we introduce and explain you the various concepts of retail inventory management like merchandising, safety stock, inventory cover, markdown, terminal stock, etc. and their relationships

We will share excel templates of the OTB tool and SSI tool that you can use by yourself to calculate open to buy in your retail organization

What's inside

Learning objectives

An overview of the product/inventory /merchandising cycle
How to plan inventory from an open to buy perspective from simplistic to very advanced
Various concepts that influence inventory planning

How does the various inventory concepts relates to each other whilst planning inventory
How to use a otb, ssi, wssi or mssi tool based on different scenarios

An overview of the product/inventory /merchandising cycle
How to plan inventory from an open to buy perspective from simplistic to very advanced
Various concepts that influence inventory planning
How does the various inventory concepts relates to each other whilst planning inventory
How to use a otb, ssi, wssi or mssi tool based on different scenarios

Syllabus

Introduction

Introduction to the Course

Introduction to Retail

Retail Inventory Merchadising

Traffic lights

Read about what's good

what should give you pause

and possible dealbreakers

Provides practical tools like OTB and SSI templates in Excel, which can be directly applied to manage inventory and buying budgets in a retail setting

Explores the merchandising cycle, which is a core concept for understanding how products move from planning to sales in a retail environment

Covers inventory turnover, stock cover, and safety stock, which are essential metrics for optimizing inventory levels and minimizing stockouts or overstock situations

Requires learners to have Microsoft Excel, which may require a purchase or subscription for those who do not already have access to it

Examines the impact of markdowns, opening and closing stock, inventory loss, and on-order items on the open-to-buy process, which is crucial for accurate financial planning

Reviews summary

Practical retail inventory planning with otb and ssi

According to learners, this course provides a practical and useful introduction to retail inventory planning. Students highly value the provided Excel tools, including the OTB tool and SSI tool templates, finding them directly applicable to their work. The explanations of core inventory concepts and the OTB calculation process are frequently highlighted as clear and comprehensive. However, some reviewers note that the SSI section can be challenging to follow or feel rushed, potentially requiring additional effort or resources to fully master. Overall, it is considered a solid foundation, particularly beneficial for beginners in the field.

Provides a solid base for new learners.

"This course was exactly what I needed to understand retail inventory planning from scratch."

"Good for beginners in inventory planning. Experienced folks might find some parts basic."

"Good overview of the merchandising cycle and inventory concepts."

OTB calculation and concepts are explained well.

"This course was exactly what I needed to understand retail inventory planning from scratch. The instructor explains complex concepts clearly."

"The breakdown of OTB calculation with various factors like markdown and stock loss was super clear."

"Solid course covering the essentials. The OTB part is very comprehensive with all the scenarios."

Provides practical OTB and SSI templates.

"The OTB and SSI tools provided are practical and easy to use. The instructor explains complex concepts clearly."

"The OTB and SSI templates are a great takeaway. Could use slightly more detail on forecasting..."

"Highly recommend this course! Provides practical tools you can immediately apply."

"The Excel tools alone are worth the price. Practical, relevant, and easy to follow."

The SSI section may be difficult or lack depth.

"However, the SSI section felt a bit rushed, and I struggled to fully grasp the nuances without more examples or perhaps interactive exercises."

"Found the SSI part difficult to follow. The explanations seemed brief for such a complex tool."

"While the OTB section was okay, the course overall didn't provide enough depth for practical application of SSI without significant external research."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Retail Inventory Planning with these activities:

Review Basic Accounting Principles

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Reviewing basic accounting principles will help you understand the financial implications of inventory decisions and how they impact a retailer's financial statements.

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Review key accounting concepts like balance sheets, income statements, and cash flow statements.
Practice calculating basic financial ratios related to inventory management.

Create a Glossary of Retail Terms

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Creating a glossary of retail terms will solidify your understanding of key concepts and terminology used in inventory planning.

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Compile a list of key terms from the course materials.
Define each term in your own words, providing examples where applicable.
Organize the glossary alphabetically and share it with other students.

Practice OTB and SSI Calculations

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Practicing OTB and SSI calculations will reinforce your ability to apply the formulas and techniques learned in the course.

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Use the provided Excel templates to perform OTB and SSI calculations with different scenarios.
Vary the input parameters (e.g., sales targets, markdown rates, inventory turnover) and observe the impact on the results.
Compare your results with the solutions provided in the course materials.

Four other activities

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Retail Buying: From Basics to Fashion

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Reviewing this book will provide a broader understanding of the retail buying process and its relationship to inventory planning.

View Retail Buying: From Basics to Fashion on Amazon

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Read the chapters related to inventory planning and open-to-buy.
Compare the concepts and techniques presented in the book with those taught in the course.
Identify any differences or similarities and reflect on their implications.

Develop an Inventory Plan for a Hypothetical Retailer

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Developing an inventory plan for a hypothetical retailer will allow you to apply your knowledge and skills to a real-world scenario.

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Choose a type of retailer (e.g., clothing store, electronics store, grocery store).
Gather data on sales, inventory levels, and other relevant factors.
Develop an inventory plan using the OTB and SSI tools learned in the course.
Present your plan to other students and receive feedback.

Inventory Management and Production Planning and Scheduling

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This book provides a more in-depth look at inventory management techniques, including forecasting and inventory control.

View Inventory Management and Production Planning... on Amazon

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Focus on chapters related to forecasting and inventory control models.
Try to relate the models to the OTB and SSI tools discussed in the course.
Consider how these advanced techniques could be applied in a real-world retail setting.

Create a Presentation on Inventory Planning Best Practices

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Creating a presentation on inventory planning best practices will help you synthesize your knowledge and communicate it effectively to others.

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Research inventory planning best practices from various sources.
Organize your findings into a clear and concise presentation.
Include examples and case studies to illustrate your points.
Practice your presentation and solicit feedback from others.

Career center

Learners who complete Retail Inventory Planning will develop knowledge and skills that may be useful to these careers:

Merchandise Planner

A merchandise planner develops and executes strategies to maximize sales and profitability through effective merchandise assortment planning. This involves analyzing sales data, forecasting trends, and collaborating with buyers and store managers. The Retail Inventory Planning course helps merchandise planners understand the essentials of inventory planning from an Open to Buy perspective. The course introduces learners to inventory planning concepts, such as merchandising, safety stock, inventory cover, and markdown. Merchandise planners can use the Open to Buy and SSI tools included in the course to calculate open to buy, allowing them to build buying budgets. By understanding these concepts, a merchandise planner can improve their ability to plan inventory and optimize merchandise assortments.

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Category Manager

Category managers oversee a specific category of products within a retail organization, managing the product assortment, pricing, and promotion. The Retail Inventory Planning course helps category managers understand the essentials of inventory planning from an Open to Buy perspective. The course introduces learners to concepts such as merchandising, safety stock, inventory cover, and markdown. The course also covers the Open to Buy and SSI tools, allowing category managers to properly calculate open to buy, which enables them to build buying budgets. By understanding these concepts and tools, a category manager can improve their ability to plan inventory. This in turn optimizes the category of products they manage.

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Retail Planner

A retail planner is responsible for developing and executing strategies to optimize inventory levels, maximize sales, and improve profitability. This role involves analyzing sales data, forecasting demand, and collaborating with merchandising teams. The course on Retail Inventory Planning helps retail planners understand the intricacies of buying budgets and inventory management. It introduces learners to methods for calculating buying budgets, such as the Open to Buy tool and the SSI tool. By understanding retail inventory management concepts, a retail planner can better manage stock flow. The course provides tools to calculate open to buy, which may be useful for retail planners.

See salaries and explore the career path for Retail Planner

Supply Chain Manager

A supply chain manager oversees the entire process of getting goods from suppliers to customers, including sourcing, production, and distribution. The Retail Inventory Planning course helps supply chain managers by providing instruction on inventory management and buying budgets. By learning about concepts like merchandising, safety stock, and inventory cover, a supply chain manager can better manage stock flow. The course also covers the Open to Buy and SSI tools, which provide them with a framework to optimize inventory levels and minimize costs. A supply chain manager with this knowledge can improve their company's supply chain performance.

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Retail Buyer

Retail buyers are responsible for selecting and purchasing merchandise to meet customer demand and achieve sales targets. This role requires knowledge of market trends, supplier negotiations, and inventory management. The Retail Inventory Planning course will help retail buyers understand the intricacies of buying budgets and inventory management. By understanding the concepts discussed in the course, retail buyers can more effectively forecast demand and make informed purchasing decisions. The course covers the Open to Buy tool and the SSI tool, which enables the retail buyer to improve flow of stock. Concepts such as merchandising, safety stock, inventory cover, and markdown are also discussed, aiding retail buyers in planning inventory.

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Inventory Analyst

An inventory analyst is responsible for monitoring inventory levels, identifying trends, and making recommendations to improve inventory efficiency. This work involves analyzing data, creating reports, and collaborating with various departments to optimize inventory management. The Retail Inventory Planning course may be useful for inventory analysts by providing a strong foundation in inventory planning and budgeting. The course explains concepts like safety stock, inventory cover, and markdown, all of which are key for an inventory analyst. It also covers the Open to Buy and SSI tools, which will help an inventory analyst perform well. The SSI tool in particular, which considers multiple time periods, may allow an inventory analyst to implement more advanced inventory management strategies.

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Demand Planner

A demand planner forecasts customer demand for products or services to ensure adequate supply. This role requires data analysis, statistical modeling, and collaboration with sales and marketing teams. The Retail Inventory Planning course helps demand planners understand the basics of inventory planning from an Open to Buy perspective. This course introduces learners to the Open to Buy and SSI tools, which a demand planner can use to improve inventory flow. A demand planner can also leverage knowledge of concepts such as safety stock and terminal stock. By understanding these concepts and tools, a demand planner can maximize their ability to plan inventory and improve demand forecasts.

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Supply Chain Analyst

A supply chain analyst optimizes the flow of goods and information across the supply chain. This role requires skills in data analysis, process improvement, and collaboration with suppliers and distributors. The Retail Inventory Planning course helps supply chain analysts understand inventory management's role in the broader supply chain. By learning about buying budgets and inventory planning, a supply chain analyst can better manage stock flow and optimize inventory levels. The course covers tools such as the Open to Buy tool and the SSI tool, which empowers the supply chain analyst to determine inventory needs. Concepts like safety stock and inventory turnover are also covered, may prove very helpful to the supply chain analyst, and further their understanding of the retail supply chain.

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Retail Manager

A retail manager oversees the daily operations of a retail store, ensuring customer satisfaction and profitability. The Retail Inventory Planning course may be useful for retail managers by providing insights into inventory management and buying budgets. By understanding the Retail Inventory Planning course's concepts, such as open to buy, inventory turnover, and stock cover, a retail manager can better optimize store inventory levels. A retail manager armed with this knowledge may make a meaningful impact on their store's efficiency and profitability. The Open to Buy tool and SSI tool that this course teaches are useful for a retail manager.

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eCommerce Manager

An eCommerce manager is responsible for overseeing the online sales and marketing efforts of a retail organization. This role requires a blend of marketing, sales, and analytical skills. The Retail Inventory Planning course may be useful for eCommerce managers by providing insights into inventory management and buying budgets. An eCommerce manager armed with knowledge of the course's concepts can better optimize online inventory levels. The eCommerce manager can leverage the Open to Buy tool and SSI tool to inform inventory decisions. By understanding these concepts and tools, an eCommerce manager may be better equipped to optimize online inventory and maximize sales.

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Operations Manager

An operations manager oversees the day-to-day activities of a retail operation, ensuring efficiency and profitability. An operations manager, depending on the scope of their role, benefits by understanding the impact of inventory planning on operations. The Retail Inventory Planning course may be useful for operations managers by providing insights into inventory management and buying budgets. Understanding the concepts discussed in the course, such as open to buy, inventory turnover, and stock cover, may help an operations manager optimize stock levels. The techniques taught in the course are relevant to ensuring a smooth operation. An operations manager can leverage this knowledge to improve operational efficiency and profitability.

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Business Analyst

Business analysts analyze data and processes to identify opportunities for improvement and efficiency gains. The Retail Inventory Planning course may be useful for business analysts who work with retail organizations by providing a deeper understanding of inventory management and buying budgets. A business analyst can leverage the concepts discussed in the course, such as open to buy, markdown, and inventory turnover, to offer better insight. The course also covers the Open to Buy tool and the SSI tool, which enables a business analyst to calculate open to buy and make recommendations. By understanding these concepts and tools, a business analyst can better evaluate a company, its processes, and offer appropriate business solutions.

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Logistics Coordinator

Logistics coordinators manage the flow of goods and materials from suppliers to customers, ensuring timely and cost-effective delivery. The Retail Inventory Planning course may be useful for logistics coordinators by providing a better understanding of inventory management. The logistics coordinator benefits by gaining greater insight into buying budgets. By understanding the concepts discussed in the course, such as open to buy, inventory turnover, and stock cover, a logistics coordinator can better collaborate with other departments. This ensures that goods are delivered efficiently. This course discusses various concepts of managing inventory that may be useful for logistics coordinators.

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Distribution Manager

Distribution managers oversee the efficient distribution of goods from warehouses to retail stores or customers. This role requires skills in logistics, transportation, and inventory management. The Retail Inventory Planning course may be useful for distribution managers needing a grounding in inventory management and buying budgets. A distribution manager can leverage understanding of concepts like open to buy, inventory turnover, and stock cover. Having access to tools such as the Open to Buy and SSI tools discussed in this course, helps a distribution manager excel. This knowledge may allow them to optimize distribution processes and minimize costs.

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Financial Analyst

Financial analysts evaluate financial data to provide insights and recommendations for investment decisions. The Retail Inventory Planning course may be useful for financial analysts who work with retail companies by providing a deeper understanding of inventory management. Understanding the concepts discussed in the course, such as open to buy, markdown, and inventory turnover, may help a financial analyst better assess the financial health of a retailer. The course also covers the Open to Buy tool and the SSI tool, enabling the financial analyst to calculate open to buy and analyze its impact on cash flow. In this way, financial analysts are well-equipped.

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Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Retail Inventory Planning.

Retail Buying

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Provides a comprehensive overview of the retail buying process, covering everything from basic principles to advanced strategies for high-fashion merchandise. It delves into topics such as assortment planning, vendor negotiation, and trend forecasting, offering practical guidance for buyers at all levels. It is particularly useful for understanding the nuances of buying across different retail segments and complements the course's focus on inventory planning.

Retail Buying: From Basics to Fashion

Paperback

Inventory Management and Production Planning and...

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Standard reference for inventory management techniques. It covers a wide range of topics, including forecasting, inventory control, and production planning. While more technical than the course, it provides a deeper understanding of the mathematical models and algorithms used in inventory optimization. This book is valuable as additional reading for those seeking a more rigorous treatment of the subject.

Inventory Management and Production Planning and...

Paperback

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Inventory Management and Production Planning and...

Kindle Edition

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Retail Inventory Planning

What's inside

Learning objectives

Syllabus

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Reviews summary

Practical retail inventory planning with otb and ssi

Activities

Career center

Reading list

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