Reorder points and safety stock

Skuvelo calculates a reorder point and safety stock for every SKU. You don't type either one in as a unit count. You set the inputs, and Skuvelo recalculates both as demand and lead times change.

What they mean in Skuvelo

• Safety stock is the extra stock held against demand swings and supplier delays. It is based on how much the SKU's weekly sales vary, the lead time, and your target service level. For supplier delays it starts from your planning buffer. Once there are five or more completed receipts of that SKU from its supplier, Skuvelo measures how much those delivery times actually vary and uses that figure when it is larger. Delivery times alone never take the allowance below your planning buffer, however steady they are. Delivery quantities can. Once five or more completed order lines of that SKU from its supplier are in, Skuvelo averages how far short of the ordered quantity each line arrived. That average is rounded to a tenth of a percent, so it counts from 0.05% up: a supplier averaging less than that rounds to zero, is treated as arriving in full, and your planning buffer stays. From 0.05% up, Skuvelo multiplies the rounded average by the lead time to get a minimum in days (a 10% average shortfall on a 20-day lead time gives 2 days) and uses that in place of the planning buffer, even when it is smaller than the buffer. The measured delivery-time figure still wins when it is larger. With no shortfall measured, or a lead time of 0 days, the planning buffer stays.
• The reorder point is the demand expected while you wait for a delivery, plus safety stock. If stock falls to that level, it's time to order.

Where you set the inputs

Settings › Planning Defaults holds the workspace-wide settings every SKU uses unless it has its own:

• Target service level: the chance of not running out between deliveries. Choose Lean (90%), Balanced (95%) or Overstock (98%), or use Fine-tune (%) to pick anything from 50% to 99.5%. A higher service level means more safety stock.
• Planning buffer: the number of days you assume a supplier's deliveries may run late. Measured delivery times never take the allowance below it. A measured short-delivery average replaces it, as described above, and can be smaller than it.

Only roles that can manage settings can change these. Other roles can view them.

To override one SKU, open it under Products and use Edit item › Replenishment overrides. Leave a field empty to use the workspace default. The same section has Safety-stock floor (days of cover), a minimum number of days of stock. Skuvelo turns it into units using average daily demand and keeps whichever is larger, your floor or its own figure. You can also edit the floor in the Safety stock column on Plan › Replenishment, but not on a phone. A discontinued product carries no safety stock.

How they drive the buy plan

A SKU shows up in the buy plan when its stock, plus deliveries arriving soon enough to count, is at or below the reorder point, or when Skuvelo projects it will run out. The recommended quantity brings it back up to lead-time demand plus safety stock plus a target number of days of cover. Minimum order quantities, order multiples and case packs can then round it up. The target days of cover in the buy plan is fixed at 28 days, and you can't change it. The What-If Planner lets you try 7 to 60 days for a scenario, but that doesn't change the buy plan.

Where you see them

• A purchase order line's recommendation detail, and the buy plan's detail on a phone, list Service level, Safety stock, Without your floor and Reorder point.
• The What-If Planner shows both figures for a scenario.
• The Inventory screen counts SKUs Below reorder point today.

Limits

• Skuvelo needs at least 8 weeks of sales history, counted from a SKU's first sale, before it forecasts that SKU or recommends an order for it.
• A SKU with no supplier linked gets no recommended order. Skuvelo still shows a reorder point and safety stock for it, worked out with a 21-day lead time until you link a supplier.
• An archived product gets no recommended order.

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