A reorder point is not a minimum stock level
The most common inventory mistake we see is treating a fixed minimum as if it were a reorder point. They answer different questions, and only one of them accounts for how long your supplier takes.
The most common inventory mistake we see is treating a fixed minimum as if it were a reorder point. They answer different questions, and only one of them accounts for how long your supplier takes.
A product that was unavailable for three weeks shows zero demand for three weeks. Every naive forecast reads that as low demand and orders less — which causes the next stockout.