How to set a low-stock alert threshold
Use sales pace and delivery lead time to set stock alerts and review reorder timing without accumulating unnecessary inventory.
A threshold should cover expected sales during delivery lead time plus a chosen safety buffer. A starting calculation is daily average sales × lead-time days + safety stock. This is a planning example; GiroPS does not automatically forecast demand or place purchase orders.
Step-by-Step Implementation
1. Measure actual sales pace
Divide sales in comparable periods by the number of days. Consider promotions, closed days and missed sales while out of stock separately; do not generalize from one busy day.
2. Account for delivery time
Measure the time from ordering until goods are ready to use. Choose a buffer for possible delays, considering the risk of excess perishable or expensive stock.
3. Set and review the threshold
Enter the threshold in the product's low-stock field. When alerted, check current quantities, expected deliveries and recent sales before ordering; an alert is not an automatic order.
Practical scenario
Example: 4 units per day, 3-day delivery
With daily sales of 4, a 3-day lead time and 6 safety units, the example threshold is 4 × 3 + 6 = 18 units. At 16 units, review replenishment. If 10 units are already due for delivery, include them before ordering more.
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