Ideal Stock

Ideal Stock

Maintaining an optimal or ideal stock level in your store is essential for avoiding extra storage costs and maintaining your gross profit and margins.

Shelf Planner uses and ideal stock instead of classic min/max parameters, using the total demand for your products (sales forecast), incoming stock and your supplier’s lead time.

By using an ideal stock, you will minimize out of stock situations and always make sure you order in time to replenish.

Setting Parameters

By default, we use a ‘6 weeks of cover’ and 2 weeks of supplier lead times when the program is installed.

This means you will have 6 weeks + 2 weeks of lead time = 8 weeks of stock for the order proposal.

Based on your sales forecast, we then calculate the Order Proposal.

In the example below, PS Brown the ideal stock based on 6 weeks of sales forecast and 2 weeks of lead time is 41 units.

The Current Stock for this article is 10 units, hence we need to order 31 units to ensure we cover 8 weeks of sales.

Changing the Weeks of Cover will automatically recalculate the Ideal Stock and subsequently the Order Proposal units.

You can change the Weeks of Stock in the Product pages or in the Mass editor in Shelf Planner:

If we for example change the Weeks of Stock for PS Brown to 12 weeks, the Order Proposal is increased to 69 units, making sure we cover 12 weeks of sales.

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