In this video, we explain how to create minimum and maximum inventory settings by brand using a new calculation based on the last year of sales data. We walk you through how to add your brand and set your minimum and maximum weeks in the system. Please make sure to enter these values so the system can calculate your inventory settings accurately.
Creating Minimum and Maximum Inventory Settings by Brand
Objective
This SOP outlines the steps to set minimum and maximum inventory levels based on sales data for each brand.
Key Steps
Step 1: Calculate Weekly Run Rate 0:09
Gather total units sold for the brand over the last 12 months.
Divide the total units sold by 52 to determine the weekly run rate.
Step 2: Determine Minimum and Maximum Weeks 0:30
Decide on the minimum and maximum number of weeks for inventory.
Enter these values into the system.
Step 3: Calculate Minimum Inventory 0:22
Calculate minimum inventory as:
Minimum Inventory = Weekly Run Rate x Minimum Weeks.
Step 4: Calculate Maximum Inventory 0:41
Calculate maximum inventory as:
Maximum Inventory = Weekly Run Rate x Maximum Weeks.
Step 5: Input Data into the System 1:14
Access the Plus Brand section in the system.
Enter the Minimum Amount of Weeks and Maximum Amount of Weeks.
Click 'Update' to save the settings.
Step 6: Review Calculated Values 1:32
Verify that the system has calculated the minimum and maximum inventory levels based on the entered weeks and weekly run rate.
Step 7: Monthly Recalculation 1:39
Ensure that the system is set to automatically recalculate the minimum and maximum inventory levels on a monthly basis.
Cautionary Notes
If there were no sales for a model in a location over the last 12 months, the minimum will be zero and the maximum will be null.
Always double-check the entered weeks to avoid incorrect calculations.
Tips for Efficiency
Regularly review sales data to ensure accurate weekly run rates.
Set reminders to check and update inventory settings monthly.