Demand: sales, season, promotion
Supply: lead time and variability
Inventory: available, reserved, inbound
Constraints: MOQ, case pack, capacity
Action: quantity, owner, date
Fixed cover is only a starting point
One seven-day rule can stock out fast movers and overstock slow movers. Safety stock absorbs uncertainty and should vary by product and location.
With limited data, start with a simple baseline and conservative lead time, disclose assumptions, and calibrate against outcomes.
Separate available from book inventory
Book inventory may include reserved, damaged, unsellable, or transfer stock. Replenishment uses available inventory plus reliable inbound minus committed demand.
Model snapshots, sales, purchase and transfer inbound, and product-location dimensions with consistent units and time.
Measure demand and lead-time variability
Average sales miss promotions and seasonality; average lead time hides unreliable suppliers. Add event adjustments to a recent baseline and retain forecast error.
Statistical methods, rules, and human judgment all have conditions. Keep review for sparse data and shocks.
Apply operating constraints
MOQ, case packs, capacity, cash, shelf life, and transfer options modify the theoretical quantity. A safety-stock calculation is not an executable purchase order.
Show available, inbound, expected demand, target, constraint adjustments, and arrival date.
Accept with outcomes
Compare stock-outs, aged stock, emergency orders, recommendation acceptance, and override reasons by product and store.
BI0 inventory analysis, alerts, and tasks can support a loop, while automated ordering, forecasting, connectors, and approvals require confirmation.
Public references
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