Stock and purchasing.
WHERE IT HELPS
Analysing sales data you supply Identifying patterns and seasonality Structuring a reorder approach Summarising supplier terms
WHAT IT CANNOT DO
Know your stock levels Predict demand without your data Replace judgement about a supplier
HOW TO USE IT
"Here is twelve months of sales by product. What patterns do you see? Which products are seasonal? Which are declining?"
Real data, real analysis.
WHAT TO ASK
Which products tie up the most money for the least return Which sell consistently Which show seasonal patterns Which have not sold at all
THAT LAST ONE
Frequently the most valuable. Dead stock is money sitting still.
WHAT TO VERIFY
The analysis against your own knowledge. If it says something surprising, check the data.
FOR REORDERING
Simple rules frequently beat sophisticated forecasting on thin data.
Reorder point based on lead time and average sales is usually sufficient.
