Decision category

Inventory decisions

Service levels, stockout cost, and working capital tradeoffs.

• Service Level Cost Tradeoff Turn a target service level into the safety stock, reorder point, working capital, and residual stockout risk it requires.
• Stockout Cost Decision Price the annual cost of a stockout risk against the real annual cost of carrying extra safety stock to avoid it.
• Multi-Item Working Capital Prioritizer Rank two or three safety-stock investments by stockout cost avoided per dollar of capital, then allocate a fixed budget across them.
• Order Frequency Comparator Compares two order-frequency options on total annual cost, ordering plus holding, so consolidating into fewer larger orders is not assumed cheaper.
• Reorder Point Planner Calculates the true reorder point, lead-time demand plus safety stock, not lead-time demand alone.