top of page

Frequently asked questions
General
Allsku's approach distinguishes itself from the traditional reorder point theory by introducing a unique methodology for inventory planning. While the reorder point theory focuses on determining the inventory level at which a new order should be placed, Allsku's approach shifts the emphasis to the reorder date system, which calculates a specific day. Our methodology integrates multiple factors such as the initial available stock quantity, current month's unit sales, orders in transit, historical lead times, monthly demand forecasts with error margins, and monthly service level requirements.
By calculating the projected day to reorder, our approach provides a more precise and optimized inventory planning process. Unlike the reorder point theory, Allsku's methodology accommodates long and/or inconsistent lead times, variability in monthly demand forecasts, and multiple replenishment orders in transit. Additionally, we offer a module for clients who prefer cyclical reviews, specifying the optimal quantity needed to reach the inventory's maximum level.
Through our methodology, businesses can avoid insufficient stock situations that lead to customer dissatisfaction, decreased loyalty, and potential loss of new customers to competitors. By utilizing Allsku's approach, many organizations experience significant improvements in line item fill rates, on-hand inventory levels, and inventory turnover compared to their previous techniques.
Overall, Allsku's innovative methodology surpasses the limitations of the reorder point theory, providing more accurate and optimized inventory replenishment planning solutions for our clients' specific needs.
bottom of page
