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SUPPLY-CHAIN-BASICS5 MIN READ

Carry the Inventory Control Deck Into the Review Meeting

Recall the core inventory-control moves behind reorder points, safety stock, and excess diagnosis.

What does a reorder point actually tell you? Think timing, not quantity. The stock level where you must release the next order so expected demand during lead time plus normal uncertainty stays covered. It is a timing trigger. EOQ may tell you how much to order, but the reorder point tells you when the replenishment clock has to start. Safety stock or excess stock? They can look identical on the shelf. Ask what problem the units are solving today. If the answer is vague or historical, the stock is probably excess. "More inventory is always safer when service is on…

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