The retailer's nightmare: piles of slow-moving stock blocking shelf space, while the bestseller is "finished" three weeks before the next container arrives.
The fix is the reorder point — a math model that tells you when to reorder, not when stock hits zero.
The formula
Reorder point = (Average daily sales × lead time in days) + safety stock
Worked example
You sell ~12 units of "Glass Cup Set" per day. Lead time from supplier is 14 days. You want 5 days safety buffer.
Reorder point = (12 × 14) + (12 × 5) = 168 + 60 = 228 units
When stock falls to 228, Supreme ERP raises a flag. Order the next batch.
Setting up in Supreme ERP
- Open the product, scroll to "Inventory"
- Set "Min stock" = 228, "Max stock" = 600 (one month's sales)
- Enable "Auto-suggest purchase order"
Why retailers underuse this
Most owners pick a "min" by feel. Result: they overstock the safe products and stock out on the volatile ones. Doing the math takes 30 seconds per SKU. Do it for your top 50.