How much inventory should we keep?

Determining the initial inventory amount can lead to two potential mistakes: keeping too much stock, resulting in unnecessary costs, or not having enough stock, leading to lost sales opportunities.

​​With our L4S, you can directly compare these rules for YOUR company’s specific customer demand and supply lead time profiles and to ensure you select the “best” rule for each product location.

When should we change the target stock level, and if we should, by how much?

With so much variability in demand and supply, it can be hard to differentiate between noise and signal. When there's a significant shift in demand or supply, adjusting the target stock levels is critical to avoid unnecessary excess or surplus inventory. But knowing when and by how much you should change the target stock level is a complex problem.

When deciding the new target stock level, you might change it when it's not necessary, or you don't adjust the target stock levels when they need to be changed.

​Our L4S allows you to simulate and test various rules for deciding when and how much to change target stock levels to find the most optimum rule for each product location.

When should we stop keeping stock of this item?

Two possible mistakes can be made when deciding when to stop keeping stock of a product: maintaining inventory for too long, thereby tying up cash and wasting precious shelf space, OR discontinuing it prematurely while it's still garnering profitable sales.

Consumer Goods Companies are constantly under pressure to launch new products. Managing the release of new products or new models can be very challenging to get right. And products don't always perform equally well in various stores or regions. How do we know when to replace an existing product with a new product?

With L4S, you can test various rules for deciding when to replace products to ensure the products you have in stock that occupy space and cash has the highest sales velocity and GMROI (Gross-Margin-ROI).