Choose the right stockout response by separating demand rate, lead time, and shelf capacity.
The empty column A fast drink sells out before every weekly service. Other drinks come back half full. Overfilling every SKU raises cash tied in inventory without fixing the real stockout. Reorder point logic Lead-time demand plus safety stock For a vending machine, par level has to cover expected sales until the next visit, plus a small buffer for variation. Shortcut Buy more of everything A par level that protects sales without bloating inventory. Increase the specific constraint, not the whole inventory pile. Measure Step 1 Lemon-lime sells 6 units per day. The facing holds 18 units. You service every…
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