Buying Recommendation Calculation
The number of units you need to buy to be at the requested "Stock Cover" at the time of the delivery.
Stock Cover: How many days' worth of inventory do you want to hold on hand at the time of delivery.
Example
In the above example, there is enough Stock to satisfy the full Plan for May and June. However, in July the Plan is higher than Stock available. And given Lead Time is not fast enough to get the Stock in time to satisfy all Plan, it leads to Sales Loss due to Stockout.
The Recommendations To Buy would focus on August and September, as this is the Stock Cover window (post Lead Time) that the customer has selected. The plan for both of these months is 200 and by the time the delivery occurs we project the SKU being in Stockout - we would recommend ordering 200x2 = 400 units.
Note: if you would still have Stock available in July, this would be netted from the recommended amount. e.g. if you had 50 units left in Stock in Aug, we would recommend ordering 400 - 50 = 350 units.
FAQ
Where can I see my Stock Cover days?
Pick the 'Days of Cover' column, the dates represent the Stock Cover window. Adjusting the Plan for this period will influence the amount we recommend to order.
