Empower Business Solutions

Handling Seasonal Demand in Inventory Management: How Supply Can Meet Unpredictable Demand

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‘Tis the season for purchasing.  And when we go to our local stores, we see entire aisles set aside for seasonal items that are only available this time of year.  But how can distribution (and retail, for that matter) companies predict, stock, and supply the right number of seasonal items?  Is there a formula that optimizes the inventory supply while not tying up unnecessary cash?

Many companies struggle with how to correctly stock erratically purchased items.  And for most, the challenge remains year-round.  By tracking the history of purchase orders, organizations can predict, with some certainty, how much of a particular item can sell, and when.

Experts suggest that planning in multiples is one way to manage unpredictably sold stock.  If, for example, your company typically sells 4 of a particular item in March, and 4 more in November, then you should keep in stock a multiple of 4.  Keeping 8 or 12 of that item in stock ensures you can fill each customer’s order and more, should they choose to double order.

If your goal is to stock as few items as possible, your organization could plan to re-order after each predicted seasonal order, instead of stocking 8 or 12 items year-round.

Inventory management can be made even easier by employing Microsoft Dynamics GP, which can optimize your inventory holdings, even for seasonal merchandise.

Empower Business Solutions, a Pennsylvania  Microsoft Partner focusing on distribution companies.

 

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