Inventory Cash Control Deck
Recall reorder point, safety stock, EOQ, and ABC controls for inventory cash management.
One blunt stock rule Control matched to decision ROP What does the reorder point protect? What is the basic reorder point formula? Average daily demand x lead time + safety stock. Use current demand and lead-time inputs, not last year's settings. Bulk buy request: what is the reflex and the skilled move? A discount is only good if it beats the cash and carrying cost. We need more safety stock on everything after the last stockout. Your line Let's update demand and lead-time risk by SKU. Some items need more protection; others would just trap cash. Turning one stockout into…
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