MULTI-SKU REORDER POINT ANALYSIS

Analysis Parameters:

• Standard Components: 95% service level (Z=1.65)
• Critical Components: 99% service level (Z=2.33)
• Lead Times: 30-40 days
• Analysis Date: 2025-12-04

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INVENTORY STATUS SUMMARY

SKU Description ROP Current Status Flag

A103 Gaskets 411 280 URGENT (CRIT)
A111 Bushings 502 380 URGENT (CRIT)
A101 M6 Bolts 562 450 URGENT
A106 Spacers 412 340 URGENT
A114 Fastener Kits 349 290 URGENT
A104 Bearings 408 350 URGENT (CRIT)
A108 O-Rings (lg) 227 180 URGENT
A110 Ext Springs 201 190 LOW
A113 Pins 285 275 LOW
A102 M8 Bolts 392 520 OK
A105 Hex Nuts 539 650 OK
A107 Washers 625 710 OK
A109 Seals 165 180 OK (CRIT)
A112 Clips 398 430 OK
A115 Retainers 178 195 OK (CRIT)

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URGENT - ORDER IMMEDIATELY

A103 - Gaskets (CRITICAL COMPONENT)
Current Stock: 280 units
Reorder Point: 411 units
Shortfall: 131 units (31.9% below ROP)
Average Daily Usage: 12.1 units/day
Days of Supply: 23.0 days
Lead Time: 30 days
STOCKOUT RISK: Will run out 7.0 days BEFORE replenishment
Recommended Order: 495 units
CRITICAL: This component may halt production if not available

A111 - Bushings (CRITICAL COMPONENT)
Current Stock: 380 units
Reorder Point: 502 units
Shortfall: 122 units (24.3% below ROP)
Average Daily Usage: 11.3 units/day
Days of Supply: 33.6 days
Lead Time: 40 days
STOCKOUT RISK: Will run out 6.4 days BEFORE replenishment
Recommended Order: 574 units
CRITICAL: This component may halt production if not available

A101 - M6 Bolts
Current Stock: 450 units
Reorder Point: 562 units
Shortfall: 112 units (19.9% below ROP)
Average Daily Usage: 14.8 units/day
Days of Supply: 30.4 days
Lead Time: 35 days
STOCKOUT RISK: Will run out 4.6 days BEFORE replenishment
Recommended Order: 631 units

A106 - Spacers
Current Stock: 340 units
Reorder Point: 412 units
Shortfall: 72 units (17.5% below ROP)
Average Daily Usage: 11.2 units/day
Days of Supply: 30.4 days
Lead Time: 34 days
STOCKOUT RISK: Will run out 3.6 days BEFORE replenishment
Recommended Order: 452 units

A114 - Fastener Kits
Current Stock: 290 units
Reorder Point: 349 units
Shortfall: 59 units (16.9% below ROP)
Average Daily Usage: 9.2 units/day
Days of Supply: 31.5 days
Lead Time: 35 days
STOCKOUT RISK: Will run out 3.5 days BEFORE replenishment
Recommended Order: 381 units

A104 - Bearings (CRITICAL COMPONENT)
Current Stock: 350 units
Reorder Point: 408 units
Shortfall: 58 units (14.2% below ROP)
Average Daily Usage: 11.3 units/day
Days of Supply: 30.8 days
Lead Time: 32 days
STOCKOUT RISK: Will run out 1.2 days BEFORE replenishment
Recommended Order: 421 units
CRITICAL: This component may halt production if not available

A108 - O-Rings (lg)
Current Stock: 180 units
Reorder Point: 227 units
Shortfall: 47 units (20.7% below ROP)
Average Daily Usage: 6.9 units/day
Days of Supply: 25.9 days
Lead Time: 30 days
STOCKOUT RISK: Will run out 4.1 days BEFORE replenishment
Recommended Order: 255 units

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ORDER THIS WEEK - Below Reorder Point

A110 - Ext Springs
Current: 190 | ROP: 201 | Short: 11 units
Days Supply: 33.9 days
Suggested Order: 104 units

A113 - Pins
Current: 275 | ROP: 285 | Short: 10 units
Days Supply: 32.6 days
Suggested Order: 141 units

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ADEQUATE INVENTORY - No Action Required

A102 - M8 Bolts: 520 units (50.3 days supply)
A105 - Hex Nuts: 650 units (43.2 days supply)
A107 - Washers: 710 units (37.2 days supply)
A109 - Seals: 180 units (46.2 days supply)
A112 - Clips: 430 units (37.6 days supply)
A115 - Retainers: 195 units (44.0 days supply)

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KEY FINDINGS & RECOMMENDATIONS

Portfolio Status:

• 7 SKUs require IMMEDIATE ordering (3 critical)
• 2 SKUs should be ordered this week
• 6 SKUs have adequate inventory

Priority Actions:

1. IMMEDIATE ORDERS (Today):

   1. A103 - Order 495 units - CRITICAL
   2. A111 - Order 574 units - CRITICAL
   3. A101 - Order 631 units
   4. A106 - Order 452 units
   5. A114 - Order 381 units
   6. A104 - Order 421 units - CRITICAL
   7. A108 - Order 255 units

2. THIS WEEK ORDERS:

   1. A110 - Order 104 units
   2. A113 - Order 141 units

Risk Assessment:

HIGH RISK: 3 critical component(s) below reorder point
These components may cause production stoppage if inventory runs out.

Overall: 9/15 SKUs (60%) below reorder point
WARNING: More than half of inventory is below optimal levels
Recommend reviewing ordering frequency and lead time management

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METHODOLOGY NOTES

Reorder Point Formula: ROP = (Avg Daily Demand x Lead Time) + Safety Stock
Safety Stock Formula: SS = Z-score x Std Dev x sqrt(Lead Time)

Service Levels Applied:

• Standard Components: 95% (Z=1.65) - 5% stockout risk acceptable
• Critical Components: 99% (Z=2.33) - 1% stockout risk only

Urgency Criteria:

• URGENT: Current inventory insufficient to cover lead time
• LOW: Below ROP but still have adequate days of supply
• OK: At or above reorder point

Analysis assumes normally distributed demand with CV ~ 30% (moderate variability)

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