Inventory basics

How much stock to keep, and when to order more.

1. 1Stock Keeping UnitInternal code for one sellable item
2. 2Lead TimeTime from purchase order to sellable stock
3. 3Safety StockExtra stock that covers demand and lead time swings
4. 4Reorder PointStock level that triggers a new order
5. 5StockoutZero sellable stock for a SKU
6. 6Economic Order QuantityOrder size with the lowest total cost
7. 7Inventory TurnoverHow often you sell through your inventory