Product · Policy

Stock policy

Recommend reorder point, order quantity, safety stock and default mode, with the service-vs-cost trade-off in view.

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Confidence band

Projected stock on hand, next 12 weeks

SKU 40-118 · Lyon DC
1 500 1 000 500 0 u Reorder point 820 u Safety stock 210 u 1 300 u Today W3 W6 W9 W12 P90 P50 P10
Median with P10–P90 range. The range widens as lead-time variance accumulates. Derived from 26 weeks of demand and 14 supplier receipts.

Service vs cost

Compare options, then set the rule.

Option C adds about 1.5 points of likely fill rate and costs €7 150 more per year to hold than option B.

Fill rate against holding cost

SKU 40-118 · Lyon DC
90% 95% 98% 100% A 94.5% · €15 150 B · proposed 97% (95–98%) · €20 750 C 98.5% · €27 900 €10k €16k €22k €28k €35k Holding cost per year
Fill rate is likely value; B shows its P10–P90 range. Derived from 26 weeks of demand and 14 supplier receipts. Fictional data.

Proposed policy, option B

Reorder point
820 u
Order quantity
450 u
Safety stock
210 u
Default mode
Make to stock
Fill rate, likely
97% (95–98%)
Holding cost per year
€20 750
210 u safety stock
Demand · 26 weeks, mean 118 u/week, σ 38 u Lead time · Rotterdam, P50 10 d, P90 12 d, 14 receipts Target · fill rate 97%, set by you
Compare with C Commit policy

How it works

Policies stay in step with promises.

Policy and Promising read the same picture. When a supplier's lead time drifts, the safety stock proposal and the dates promised on open orders move together, and both show why.

How Provisor maps to your org
Option Likely date Range Extra cost
A18 Nov16–21 Nov€0
B16 Nov15–17 Nov+€310

Set stock rules you can explain.

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