Daily Inventory Replenishment Report
The Daily Inventory Replenishment Report is designed for businesses that require quick and responsive inventory management. It focuses on a 14-day historical sales period, accounting for short vendor lead times and minimal safety stock days.
# Key Features of the Report
Short-Term Focus: Concentrates on recent sales data (14-day period) for accurate, up-to-date inventory insights.
Quick Vendor Lead Times: Optimized for vendors with lead times of less than 7 days.
Minimal Safety Stock: Safety stock days set at 1 day to maintain a lean inventory.
Key Metrics and Report Columns
Product/Variant/SKU: Identifies each specific product and its variants.
Vendor: The supplier of the product.
Vendor Lead Time: The time taken by the vendor to deliver the product, typically less than 7 days in this scenario.
Safety Stock Days: Indicates the minimal safety stock level, set at 1 day.
Units Sold in Historical Period: The total number of units sold over the last 14 days.
Average Units Sold per Day: The daily sales average, derived from the 14-day historical period.
Quantity On-hand: Current inventory level of each product.
Incoming Inventory: Inventory that has been ordered but not yet received.
Days of Inventory Remaining: An estimate of how many days the current stock will last.
Reorder Point: The stock level at which a new order should be placed.
Reorder Quantity: The suggested amount to reorder based on sales velocity and stock levels.
Formulas for Reorder Point and Reorder Quantity
Reorder Point: Calculated as [Average Units Sold per day] x ([Vendor Lead Time] + [Safety Stock Days]). This is the inventory level at which you should trigger a new order.
Reorder Quantity: When the 'Quantity On-hand' falls below the Reorder Point, the reorder quantity is equal to the Reorder Point. If the on-hand quantity is higher than the Reorder Point, no replenishment is suggested.
Utilizing the Report for Daily Replenishment
Inventory Analysis: Daily review of products nearing the reorder point, especially those with low days of inventory remaining.
Replenishment Planning: Use average sales and current stock levels to determine immediate replenishment needs.
Vendor Coordination: Fast-track communication with vendors for products requiring urgent replenishment, leveraging the short lead times.
Safety Stock Adjustments: Monitor and adjust safety stock levels based on sales trends and variability.
Prioritize Urgent Reorders: Focus on products with the lowest days of inventory remaining and those below the reorder point.
Adjust Ordering Frequency: For products with high sales velocity or consistent low-stock alerts, consider increasing order frequency.
Review Vendor Performance: Ensure vendors are meeting lead time expectations to maintain the efficiency of the replenishment cycle.
Updated on: 12/12/2023