Inventory and cash
Should we reorder before stock runs out?
- What it noticed
- There are 8 days of stock coverage. The supplier needs 15 days to replenish it.
- Why it matters
- Stock could run out before the next delivery.
- What it proposes
- Confirm whether the supplier can bring the first delivery forward, then review a staged purchase to preserve cash.
- Example source
- Sales, inventory and supplier lead time: illustrative data.
What to consider
A smaller order preserves cash but may increase unit costs.
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