Here's what I'm curious about: if you run a business, do you have a specific point at which you reorder, or do you mostly restock when you notice products are running low?
Imagine telling your boss you need to restock when there are still 50 units on the shelf.
Sounds like unnecessary spending, right?
But what if those 50 units won't even last 3 days?
This is why I say stock quantity alone doesn't tell the full story.
For example, if you sell 20 units daily and restocking takes 4 days, you'll need 80 units to cover that waiting period.
Add a safety stock buffer of 30 units, and your reorder point becomes 110 units.
That's when you should place your next order.
There's actually a concept for deciding when to restock: Reorder Point (ROP).
It's the stock level that tells you it's time to place another order, based on how quickly a product sells and how long replenishment takes.
I studied Statistics, but I didn't realise I was building the foundation for a career in Data Analytics.
Excel started as a tool for solving assignments. Today, data has become my profession.
Sometimes, your course is preparing you for opportunities you haven't discovered ye
Let's test your data analytics instincts.
You receive a sales report, but the total doesn't match Finance's figure.
What's the FIRST thing you would investigate?
I'm curious to hear different approaches. 👇