Stop running one reorder rule across every store
Set a service level and lead time, and watch the right reorder point and safety stock diverge across high-, mid- and low-volume stores. One flat rule can't fit them all.
All resourcesYour typical store
Units sold per day in a typical store, for one SKU or category.
Demand variability
How spiky demand is — promotions, weather and trends push this up.
Days between placing a replenishment order and receiving it.
Probability of not stocking out during the lead time.
Recommended thresholds by store archetype
| Store | Daily demand | Safety stock | Reorder point | Days of cover |
|---|---|---|---|---|
| High-volume store | 50 | 113 | 463 | 9.3 |
| Typical store | 20 | 48 | 188 | 9.4 |
| Low-volume store | 8 | 21 | 77 | 9.7 |
The cost of a flat rule
Apply your typical store's reorder point (188 units) to every store and you'd understock your busiest stores by 59% and overstock your quietest by 59%.
Textbook safety-stock model (z × σ × √lead time) on the inputs above. A live deployment learns each store's real demand distribution rather than three archetypes.