Introduction to Statistics for Supply Chain Analytics
Goal of the Day
Build a solid understanding of basic statistics, learn how to calculate and interpret key metrics, and prepare to apply these concepts in analyzing inventory and sales performance in supply chain datasets.
Detailed Tasks with U2xAI Prompts and Interview Preparation Focus
1. Learn Basic Statistical Terms and Their Relevance
- What to Do:
Study key descriptive statistics: mean, median, mode, standard deviation, variance, minimum, maximum, and range. - U2xAI Prompt:
"Explain mean, median, mode, variance, and standard deviation using supply chain examples like sales or inventory levels." - How This Helps for Interviews:
Many interviewers ask questions like “How would you summarize sales performance?” You need to understand which stat to use and when. - Time Recommendation: 1 hour
2. Apply Statistics to Inventory and Sales Metrics
- What to Do:
Use Excel or Google Sheets to calculate mean, variance, and standard deviation on a sample inventory or sales dataset. - U2xAI Prompt:
"Show me how to calculate mean, variance, and standard deviation in Excel with a sample inventory or sales dataset." - How This Helps for Interviews:
You’ll often be asked, “How do you analyze variability in demand or stock levels?” These calculations are your toolkit. - Time Recommendation: 1.5 hours
3. Link KPIs to Real Supply Chain Data
- What to Do:
Identify how these statistics translate into KPIs — e.g., average daily sales, stock level variability, forecast error variation. - U2xAI Prompt:
"Which KPIs in supply chain analytics are calculated using basic statistics like mean and standard deviation?" - How This Helps for Interviews:
Interviewers test your understanding of metrics like inventory turns, forecast accuracy, or demand variability. This prepares you to explain them clearly. - Time Recommendation: 45 minutes
4. Create Your Personal Statistics Cheat Sheet
- What to Do:
Create a one-page sheet with:- Definitions of key stats
- Formulas
- When and where to apply them in supply chain
- U2xAI Prompt:
"Help me create a one-page cheat sheet of basic statistics with formulas and supply chain use cases." - How This Helps for Interviews:
Having crisp notes makes review faster before interviews. You’ll also internalize the difference between when to use mean vs median, etc. - Time Recommendation: 30 minutes
5. Plan What to Learn Next (Advanced Statistics)
- What to Do:
Note down 3 advanced topics to learn next — e.g., correlation, regression, trend analysis — and their expected value in forecasting or root cause analysis. - U2xAI Prompt:
"List 3 advanced statistical concepts relevant to supply chain analysis and how each is used in decision making." - How This Helps for Interviews:
You’ll be ready to say, “Here’s what I know already and here’s what I’m learning next,” which shows initiative and growth mindset. - Time Recommendation: 15 minutes
Step-by-Step BUILDUP Application for Day 3
- Breakdown:
Today’s focus is on basic statistics for analyzing supply chain data. - Understand:
Learn definitions and formulas for mean, variance, standard deviation, etc. - Implement:
Practice calculating metrics using Excel or Google Sheets. - Link:
Connect each stat to KPIs and supply chain decisions (e.g., inventory variability → reorder policy). - Document:
Build a 1-page cheat sheet with definitions, formulas, and use cases. - Upgrade Progress:
Identify 3 advanced topics to explore in later weeks and note their relevance.
Deliverables for Today
- Calculations for at least one sales and one inventory dataset
- One-page Statistics Cheat Sheet (formulas + use cases)
- List of 3 advanced statistical topics to explore
Practice Interview Questions for Day 3
- What’s the difference between mean and median, and when would you use each in supply chain analysis?
- How would you explain standard deviation to a non-technical stakeholder in the context of sales performance?
- If forecast errors have high variance, what would you recommend?
- What does a high standard deviation in inventory levels indicate?
- How do basic statistics support decision-making in supply chain planning?
Bonus Task:
Try explaining your calculations and cheat sheet to a peer or record a 2-minute explanation. Clarity builds confidence.
