When to activate
- Planning reorder quantities and timing
- Preparing for seasonal demand shifts
- Analyzing sales velocity trends per SKU
- Evaluating supplier lead times and reliability
- Building safety stock calculations
When NOT to use
- For real-time stock level checks (use inventory-manager)
- For dead stock identification
- For warehouse layout optimization
Instructions
- Calculate sales velocity. Units sold per day over 30/60/90-day windows per SKU.
- Detect seasonality. Compare current velocity to same period last year; flag seasonal uplift or decline.
- Compute reorder point. ROP = (avg daily sales × lead time days) + safety stock.
- Calculate safety stock. SS = Z-score × std_dev(daily sales) × sqrt(lead time days) for desired service level.
- Forecast demand. 90-day rolling forecast using weighted moving average (recent weeks weighted higher).
- Flag risks. SKUs with lead time >14 days, high velocity variance, or single-supplier dependency.
- Generate reorder report. SKU, current stock, velocity, ROP, recommended order qty, supplier, lead time.
Example
SKU: WIDGET-BLUE-LG
Velocity: 12 units/day (30d avg)
Lead Time: 7 days
Safety Stock (95% service): 25 units
Reorder Point: (12 × 7) + 25 = 109 units
Current Stock: 87 units → REORDER NOW
Recommended Qty: 200 units (EOQ based on order cost + holding cost)