Explainer · Business120 units sold out of 400 received is 30 %. Whether that is a success depends entirely on how long it took, and the rate on its own does not carry the answer.
Camille Laurent · 3 min read
Explainer · BusinessOpening stock 40,000, purchases 120,000, closing stock 35,000 — the cost of goods sold is 125,000, and it is larger than the purchases because the shelf gave up 5,000 of what was already there.
Camille Laurent · 3 min read
Explainer · BusinessA gap of 1,800 is a shrinkage rate of 3.6 %. The percentage is the number that travels; the absolute figure is the one that pays for the fix.
Camille Laurent · 3 min read
Explainer · BusinessSelling 100 a day with a ten-day lead time and 300 units of safety stock, you reorder at 1,300 — not because 1,300 is a comfortable level, but because that is what ten days of selling costs.
Camille Laurent · 3 min read
Explainer · BusinessGoing from a 95 % service level to 99 % raises the z-score from 1.645 to 2.326 and the safety stock from 346 units to 488. The last few points of availability are the expensive ones.
Lena Hoffmann · 3 min read