Assortment optimization, pricing decisions, and promotional activity fall flat if a product is not available for purchase. Out-of-stocks, overstocks, and markdowns drive down already strained profit margins. Replenishment, however, maximizes sales while minimizing inventory expense. By understanding replenishment, and planning and allocation, enterprise can determine the best strategies for addressing forecasting and inventory concerns, and improve profit margins.
examples of performance summaries
considered in the process. Examples include presentation minimum, seasonal selling profile, buying multiple, shipping multiple, order cycle, safety stock or service level goal, leadtimes, vendor ordering requirements and daily updates to shipment and/or sales history and current inventory. While most of the user-defined variables do not change frequently once established, the initial setup effort for an item on replenishment can be time consuming. Upon completing the up-front time investment, most