Two stores each have six units of the same serum available for sale, yet their recommended order quantities can differ. One has a smaller sales requirement and stock arriving soon. The other has higher demand and a longer interval before the next delivery.
The total stock requirement is the quantity a store needs to prepare for a defined period. Deduct saleable stock and inbound units that will be available in time, then apply supply conditions to arrive at an order recommendation. Store and product policies establish the target; operational data and supply constraints turn that target into a quantity.
Set the total stock requirement using store and product policies
Product ABC classifications and store tiers help determine where inventory investment should be focused. Priority products need appropriate sales coverage, while slower-moving items require control of stock investment. The same product can therefore have different stocking standards across stores.
Classification sets the management direction. The specific target also depends on sales and replenishment conditions for each store and SKU. Longer delivery intervals require coverage for more time; frequent, dependable supply can support sales with less stock. The total requirement should cover expected sales for the relevant period and include the safety allowance defined by the brand.
Each calculation needs a clear coverage period and expected saleable dates for the current and subsequent deliveries. The merchandise team can then identify which demand existing stock will cover and which requires replenishment, checking availability before the next delivery as well as the total quantity over the period.
PEKON's ordering and inventory optimization solutions support differentiated parameters and ordering rules. Brands can define policies by store type, region and tier, as well as product category, tag and SKU. For the roles of different inventory tools, see the inventory management system selection guide.
Check saleable stock and timely inbound supply
Once the total requirement is set, establish how much stock can serve the relevant sales period before calculating the gap.
The simplified example below uses the same serum in two stores. Each store's requirement follows its own policy. On-hand and inbound quantities count only when available for the relevant period; pack sizes and warehouse supply limits are excluded at this stage.
| Calculation | Store A | Store B |
|---|---|---|
| Total stock requirement | 10 units | 20 units |
| Saleable stock | 6 units | 6 units |
| Inbound units available for sale in time | 2 units | 0 units |
| Base replenishment gap | 2 units | 14 units |
Store A's gap is 10 − 6 − 2 = 2 units; Store B's is 20 − 6 = 14 units. Their on-hand quantities match, but their targets and eligible inbound supply differ. This calculation translates differentiated standards into quantities.
Inventory deductions should use available quantities. Testers, gifts and goods committed to other purposes are distinguished from saleable stock under the applicable management rules. Inbound supply also requires an expected saleable date: goods arriving after a campaign ends cannot offset that campaign's demand.
Timing determines whether a gap can be covered. If stock is expected to run out before this delivery, the team should separately review earlier delivery or inter-store transfers. Adding units to a later shipment does not recover sales opportunities before its arrival.
Apply supply constraints to make the order actionable
The base gap must be considered alongside pack sizes, warehouse availability and delivery arrangements. If Store A needs two units but the warehouse ships full cases, the adjustment follows brand rules and considers the additional stock investment. Limited warehouse supply may require allocation, split deliveries or transfers.
Keep the basis for demand and fulfillment distinct: how much the store needs, the recommended order, the quantity available to supply and when it will be saleable. Merchandise teams confirm the arrangement; warehouse and delivery teams carry it out. When arrival dates change, check whether the recommendation still covers the intended sales period.
PEKON's ordering and inventory optimization solutions support differentiated rules and parameters, quantity calculations and simulations, with business users reviewing and adjusting recommendations. Formulas, inventory and inbound data, supply constraints and approval scope depend on the product version and project configuration. Learn more on the PEKON inventory optimization product page.
Store and product policies establish the total requirement, operational data determines the gap, and supply conditions shape execution. Connecting these elements helps merchandise teams apply replenishment standards across many stores and SKUs and assess order recommendations on a clear basis.