A reorder point is not a minimum stock level
Treating a fixed minimum as a reorder point is the commonest inventory mistake we see. Only one of the two accounts for supplier lead time.
Treating a fixed minimum as a reorder point is the commonest inventory mistake we see. Only one of the two accounts for supplier lead time.
A product unavailable for three weeks shows zero demand. Naive forecasts read that as low demand and order less — which causes the next stockout.