Calculate a reorder point from demand, lead time, and safety stock for a core jewelry SKU.
14K 6mm ball studs keep stocking out before weekend traffic, even though the SKU looks minor compared with bridal and diamond categories. Reorder point = demand during lead time + safety stock. Common trap: waiting until the peg looks empty, then placing an urgent order that arrives after the weekend opportunity is gone. Step 1 Average daily demand is 2 pairs of studs. Use recent store demand, not chainwide averages, because local gifting traffic drives the basic. Step 2 Vendor lead time is 5 days, so lead-time demand = 2 x 5 = 10 pairs. This is the stock expected…
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