Reorder algorithms: Stock level calculations

We need to estimate the future stock situation to calculate the right amount to order and keep the right balance between store and warehouse stock.

Stock level calculations criteria: 

• Stock Projection
• Store Stock
• Safety Stock
• Sell-out target
• Overstock Adjustment
• Warehouse Stock

The stock levels, both at the stores and at the warehouse, play a vital role on the reorder final decision.

The algorithm will compare the Demand Forecast vs the Stock Projection & the Store Stock Level of each sku-store to define the final reorder quantity

Overstock adjustment

The stock levels both at the stores and at the warehouse play a key role on the reorder final decision