Make stock assumptions visible and give each operational improvement an owner and review date. This worksheet supports purchasing decisions; it does not automatically authorize an order.
Stock and timing inputs
| Input | Your value | Evidence or source |
|---|---|---|
| SKU and fulfillment location | [details] | [system] |
| Relevant demand period | [dates] | [report] |
| Average daily demand | [units/day] | [adjust for stockouts and unusual events] |
| Replenishment lead time | [days] | [order to ready-for-sale history] |
| Review interval | [days] | [operating schedule] |
| Safety stock assumption | [units] | [reason and uncertainty] |
| Usable on-hand stock | [units] | [exclude damaged stock] |
| Confirmed incoming stock and dates | [units and dates] | [supplier confirmation] |
| Outstanding demand | [units] | [orders; avoid double subtraction] |
Inventory position equals usable on-hand plus confirmed incoming stock minus outstanding demand. If your available-stock figure already subtracts commitments, do not subtract them again. Check arrival timing separately; late incoming stock may not prevent a stockout.
Calculate a starting plan
- Continuous-review reorder point = daily demand × lead time + safety stock.
- Periodic-review target = daily demand × (lead time + review interval) + safety stock.
- Periodic suggested order = maximum of zero and target minus inventory position.
Hypothetical example: four units/day, 15-day lead time and 20 units of safety stock give an 80-unit reorder point. A seven-day review interval gives a 108-unit periodic target. If inventory position is 50, the initial order suggestion is 58 units before case-pack and minimum-order adjustments.
Choose the model that matches how often you actually review stock. Do not treat the example buffer as a recommendation for your store.
Purchase approval check
- Supplier quantity, timing and quality requirements are verified.
- Case packs and minimum order quantities are included.
- Cash payment dates and available funds are reviewed.
- Storage, shelf life and product obsolescence are considered.
- Slow-demand and delayed-delivery scenarios are recorded.
- Promotion assumptions are explicit.
- A named person has approved the purchase.
A 30-day improvement cycle
| When | Work | Output |
|---|---|---|
| Days 1–7 | Reconcile stock and review one recurring problem | Evidence and baseline |
| Days 8–14 | Make one bounded change | Owner, release date and rollback option |
| Days 15–21 | Observe operations and customer effects | Counts, exceptions and feedback |
| Days 22–30 | Review the result and assumptions | Keep, revise or stop decision |
Extend the observation period when lead time or customer behavior requires it. Thirty days is a planning cadence, not proof that an experiment has enough data.
Decision log
- Problem, affected SKUs and evidence: [details]
- Proposed change and expected outcome: [details]
- Primary measure and denominator: [details]
- Guardrail for cash, availability or customer experience: [details]
- Owner, review date and actual result: [details]
- Unexpected effects and next decision: [details]
Read the inventory planning guide and cash-flow guide before placing the next order.
Want help applying this to your store?
Take the free store assessment for a suggested next step, or book a 15-minute call to talk it through.