Learn

Avoid Stock-outs

 

In this short video we explain the quickest way to avoid a stock out for a small business and ultimately avoid a lost sale. For this we use a simple equation:

 

Average Daily Demand (in Units) x Lead time (# of days to receive a new shipment) = Min inventory amount to avoid stock out when re ordering.

Inventory Holding Cost

 

Learn how to calculate your inventory holding cost.

 

Formula: Cost of Product (from the supplier) + Shipping + Space used (Rent,taxes,insurance) + Cost of deterioration (The % of product that spoils X cost)

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Avoid common inventory issues