Plan a small-shop replenishment
Check usable product cost, compare supplier packs and review a replenishment trigger.
This is an invented scenario for learning, not a customer story. All amounts use one unspecified currency.
The question to resolve
A reconciled unit cost, a pack comparison and a separate timing decision.
- Batch costs and rejected quantities
- Comparable supplier pack offers
- Observed demand, lead time and inventory position
Find the usable batch cost
Materials 400, labor 100 and overhead 40 make 540. Twelve rejected units leave 108 usable units, costing 5 each. This is a make-cost reference, not a supplier invoice.
See the exact demonstration inputs
- materials
400
- hours
4
- rate
25
- overhead
40
- units
120
- rejects
12
Compare whole-pack offers
A supplies exactly 108 for 558. B requires five packs, supplying 120 for 590. A has the lower cash outlay; B has a lower cost per supplied unit. Quality and delivery remain separate checks.
See the exact demonstration inputs
- need
108
- items
Supplier,PackSize,PackPrice,Shipping Supplier A,12,60,18 Supplier B,24,118,0
Decide whether timing needs attention
Six units per day for seven days, plus 18 safety units, gives a trigger of 60. Position 50 is already below it. The trigger does not decide whether to buy 108 or 120 units.
See the exact demonstration inputs
- daily
6
- lead
7
- safety
18
- stock
50
Make the handoff explicit
Review the assumptions before adapting these figures. A calculated result is not an order, invitation, accepted quotation or guaranteed deadline. Save your own copy before leaving; no work is stored automatically.
Read the related explanations
PRACTICAL GUIDEReorder point and EOQ answer different questions
Keep replenishment timing separate from order quantity, then check packs, lead times and inventory position.
Read the guide
PRACTICAL GUIDEA net-zero stocktake can still hide a real problem
Read shortages, overages and absolute value variance before adjusting a stock record.
Read the guide