Variables in stock control How much we

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Variables in stock control • How much we think we’ll use (estimated weekly consumption) • How much we’ve got (number on shelf) • How much to keep back (minimum stock level) • How long it takes to get the stock (lead time) • Whether or not to re-order • How much to re-order (re-order quantity)

Simple Stock Control • Do we order more? • Yes, if number on shelf is less than forecast weekly consumption • How much do we order? • Forecast weekly consumption minus number on shelf

Minimum stock level • This system doesn’t keep any reserve stock (we don’t want to run out completely) • Shandra wants to always have at least a quarter of what she expects to use available. • Add a column for minimum stock control (estimated weekly consumption divided by 4) and change the re-order? and quantity columns to take it into account

Minimum stock level • Do we order more? • Yes, if number on shelf is less than forecast weekly consumption + minimum stock • How much do we order? • Forecast weekly consumption plus minimum stock level minus number on shelf

Lead Time • Buy-it all are now offering a delivery service and guarantee delivery within 3 days. • Add a column for lead time and change the re-order? and quantity columns to take it into account

Lead time • Do we order more? • Yes, if number on shelf is less than (forecast weekly consumption * lead time) + minimum stock • How much do we order? • ((Forecast weekly consumption * lead time) + minimum stock level) minus number on shelf

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