Ideally you want just enough inventory to cover the demand with a little buffer. That way you don’t get saddled with a bunch of shit merch if there is a recall, or a new version is released. Also so you’re not filling your warehouse shelves with stuff that’s taking up space for other products.
Problem is, some weeks people buy more, some weeks they buy less. Also some weeks a shipment doesn’t show up in time, shit gets stolen, shit gets damaged. You can place an order for more inventory to cover the gap, but that takes time to process and arrive.
It’s a very imperfect process with a lot of variables that constantly change.
Ideally you want just enough inventory to cover the demand with a little buffer. That way you don’t get saddled with a bunch of shit merch if there is a recall, or a new version is released. Also so you’re not filling your warehouse shelves with stuff that’s taking up space for other products.
Problem is, some weeks people buy more, some weeks they buy less. Also some weeks a shipment doesn’t show up in time, shit gets stolen, shit gets damaged. You can place an order for more inventory to cover the gap, but that takes time to process and arrive.
It’s a very imperfect process with a lot of variables that constantly change.
JIT inventory practices? Sales pressure?