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LETS GET DOWN TO BUSINESS.

Question :
Hi, Ive found that post lockdown business started with a boom but has slowed down a tad so I’m not sure how much stock I should order in, in the next few months? Cheers

Question submitted 23/06/20 @ 12:47pm
Industry: Manufacturing
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  • Hey Dave – this is a super good question, a thought would be to look back to see if that helps – take a look at the period pre covid
    – during covid
    – post covid

    see if you can see any patterns or trends in each of those three periods.

    Maybe it will give you some insights as to how much – over-stocking is not good, and under-stocking is worse!

    You know that – I wish I had more insight!

    Hi Dave

    this is a function of the demand, post Covid there was pent up demand, this has probably settled down somewhat to give you a more accurate view of the forward demand. The trick is to set a safety tock level which covers your delivery lead time and set the demand level to meet or be just below demand. As things stabilise you lower the safety stock level. This of course varies by the nature of the product as well, but hopefully this makes sense. Happy to chat further if you want to talk through in more detail 0275349258

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