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Stock Replenishment Methods

oboloo Glossary

Stock Replenishment Methods

Stock Replenishment Methods are a key part of managing inventory and keeping shelves stocked. These methods aim to balance the need for having ample stock with the need to keep costs low. There are a few popular strategies for determining the best way to replenish stock. The first is the reorder point method, whereby stock levels are monitored daily, and items are reordered when they drop below a pre-determined threshold. The second is the ABC analysis, which prioritises inventory based on its value. Lastly, safety stock can be used to reduce the risk of running out, by allowing businesses to plan for possible spikes in demand or unexpected delays. By using stock replenishment methods effectively, businesses can ensure they always have enough product in stock while avoiding oversold inventory and high costs.

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