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How do the replenishment cycle units get computed?
How do the replenishment cycle units get computed?
Barry Kukkuk avatar
Written by Barry Kukkuk
Updated over 2 years ago

The Replenishment cycle indicates how frequently you would like to replenish an item, while the relating units indicate the amount of cycle stock required to satisfy the item’s demand. This replenishment cycle is an inventory policy specified for stocked items.

The lead time, safety stock and replenishment cycle within the app are in days – this is essential in order to deal appropriately with future demand, which may be seasonal.

For example: 10 days of safety stock out of season might equate to 5 units while 10 days in peak season might equate to 300 units. Using days is key to computing dynamic optimal levels that react to changes in demand.

In order to decide WHEN to order and HOW MUCH to order, the “days” need to be converted to units so they can be tested against your available on hand stock.

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