What Is Inventory Turnover? Formula and Best Practices
Inventory turnover measures how many times you sell and replace your inventory during a period—a key indicator of how efficiently your inventory investment generates sales.
· 4 min read
Glossary
Plain definitions for the inventory planning terms that get used loosely. Each entry explains the term, the formula where there is one, and when it actually matters.
What Is a Purchase Order? Everything You Need to Know
A purchase order (PO) is a formal document from buyer to supplier that specifies products, quantities, prices, and delivery terms—your official request to buy goods.
· 5 min read
What Is Fill Rate? Definition and How to Calculate It
Fill rate is the percentage of customer demand that you fulfill from stock on hand—a direct measure of how often you have what customers want when they want it.
· 4 min read
What Is S&OP (Sales and Operations Planning)?
Sales and Operations Planning (S&OP) is a business process that aligns sales forecasts with supply capabilities and financial goals into a single, agreed-upon plan.
· 4 min read
What Is Lead Time in Inventory Management?
Lead time is the total duration between placing an order and having that inventory available to sell—not just shipping time, but every step from order to shelf.
· 5 min read
What Is Demand Forecasting? A Complete Guide
Demand forecasting is the process of predicting future customer demand for your products using historical sales data, market trends, and other factors.
· 5 min read
What Is a Reorder Point? Definition and How to Calculate It
A reorder point (ROP) is the inventory level at which you need to place a new order with your supplier—the trigger that tells you it's time to reorder.
· 5 min read
What Is Safety Stock? Definition, Formula, and Examples
Safety stock is the extra inventory you keep on hand to protect against uncertainty—your buffer between what you expect to happen and what actually happens.
· 4 min read