The Reorder Point Formula: Everything You Need to Know
The more your business grows the more difficult it is to maintain ideal stock levels across your products. Setting a reorder point for your most important SKUs helps you determine when to replenish your stock, so that you have neither too much nor too little of any given item. A carefully calculated reorder point is […] ... Read More
December 3, 2020 inventory metrics, inventory reporting, stock reorderWhat is SKU? A complete guide to Stock Keeping Units
SKU codes are everywhere – built into sales and inventory management platforms, and broken down line-by-line in all sorts of inventory report. Here’s everything you wanted to know about the meaning of SKU but were afraid to ask. What is SKU? So what does SKU mean? SKU stands for Stock Keeping Unit – and while […] ... Read More
December 1, 2020 inventory metrics, inventory reporting, SKUHow to calculate safety stock – with formulas and examples
To calculate safety stock, work out your average daily use for a product and multiply it by its average lead time – how long it takes, in days, to arrive once you place an order. Then subtract this number from your maximum daily use times your maximum lead time. The result is the safety stock […] ... Read More
November 27, 2020 accurate inventory, excess inventory, inventory management, inventory metrics, inventory reporting, safety stock