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Replenishment / Restock

Replenishment (restock) is the process of deciding when to order and how much inventory to purchase in order to maintain availability and support expected demand.

Why It Matters

•Directly influences stockouts, excess inventory, and service levels.
•Traditionally based on simple rules (days of supply, minimum stock levels) rather than financial returns.
•Strongly affects how much capital is tied up in inventory at any given time.
•Becomes increasingly complex as SKU and suppliers count, lead times, and channels grow.

Connection to Capital

Every replenishment decision is an investment decision: it determines where, when, and for how long capital will be locked in inventory.

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