Reducing waste without stockouts

We moved to twice-weekly cycle counts and tightened min/max around a 12-day lead time; write-offs fell 18% last quarter, but we still had two stockouts on a fast mover. What’s working for you to balance safety stock against spoilage — any luck with dynamic reorder points tied to demand variance instead of static forecasts?

‌⁠‍⁠​‍​‍‌⁠‌​​‍​‍​⁠‍‍​‍​‍‌‍‌‍‌‍​‌‌⁠​⁠‌⁠‌​‌‍‌‍‌‍⁠⁠‌‍⁠⁠‌‍‌​​‍​‍​‍⁠​​‍​‍‌‍‍⁠​‍​‍​⁠‍‍​‍​‍‌‍⁠‍‌‍‌‌‌⁠‌⁠‌‌⁠⁠‌⁠‌​‌‍⁠⁠‌⁠​​‌‍‍‌‌‍​⁠​‍​‍​‍⁠​​‍​‍‌‍‍‌‌‍‌​​‍​‍​⁠‍‍​‍​‍‌‍⁠‍‌‍‌‌‌⁠‌⁠​‍​‍​‍⁠​​‍​‍‌‍‌​​‍​‍​⁠‍‍​‍​‍​⁠​‍​⁠​​​⁠​‍​⁠‌‍​⁠​​​⁠​‌​⁠​‌​⁠‍​​‍​‍​‍⁠​​‍​‍‌‍‍​​‍​‍​⁠‍‍​‍​‍​⁠‌‍‌‍​‍‌​⁠⁠‌⁠​​‌​‌⁠‌​‍​‌‌‍​‌​‌‌‌‌‍​‌​​⁠‌⁠‌⁠‌‌⁠⁠​⁠‌⁠​⁠​‌‌​‌‌‌‍⁠⁠​‍​‍‌⁠⁠‌

We moved to dynamic reorder points using z times the stdev of demand over lead time per SKU and recalc weekly; for the ‘fast mover’ we target a higher service level and add a floor so variance spikes don’t blow up stock — like cruise control with a speed cap. Are you smoothing the variance with EWMA or letting raw weekly swings drive it?

‌⁠‍⁠​‍​‍‌⁠‌​​‍​‍​⁠‍‍​‍​‍‌‍‌‍‌‍​‌‌⁠​⁠‌⁠‌​‌‍‌‍‌‍⁠⁠‌‍⁠⁠‌‍‌​​‍​‍​‍⁠​​‍​‍‌‍‍⁠​‍​‍​⁠‍‍​‍​‍‌⁠​‍‌‍‌‌‌⁠​​‌‍⁠​‌⁠‍‌​‍​‍​‍⁠​​‍​‍‌‍‍‌‌‍‌​​‍​‍​⁠‍‍​⁠​‍​⁠​‍​⁠​⁠​⁠‍​​‍⁠​​‍​‍‌‍‌​​‍​‍​⁠‍‍​‍​‍​⁠​‍​⁠​​​⁠​‍​⁠‌‍​⁠​​​⁠​‌​⁠​‍​⁠​‌​‍​‍​‍⁠​​‍​‍‌‍‍​​‍​‍​⁠‍‍​‍​‍‌⁠‍‍‌‍‌‌‌​‌​‌⁠‌⁠‌​​⁠‌​‌‍‌‌​‌​⁠‍‌‌​‍‍‌‍‍​‌‍​‌‌‌‌⁠‌⁠‍‍​⁠‌‌‌‍⁠‍​⁠‌‍​‍​‍‌⁠⁠‌​​

Could you make the fast mover continuous review and size SS on 12‑day CV? Slight spoilage tradeoff, @emartin92.

‌⁠‍⁠​‍​‍‌⁠‌​​‍​‍​⁠‍‍​‍​‍‌‍‌‍‌‍​‌‌⁠​⁠‌⁠‌​‌‍‌‍‌‍⁠⁠‌‍⁠⁠‌‍‌​​‍​‍​‍⁠​​‍​‍‌‍‍⁠​‍​‍​⁠‍‍​‍​‍‌⁠​‍‌‍‌‌‌⁠​​‌‍⁠​‌⁠‍‌​‍​‍​‍⁠​​‍​‍‌‍‍‌‌‍‌​​‍​‍​⁠‍‍​⁠​‍​⁠​‍​⁠​⁠​⁠‍​​‍⁠​​‍​‍‌‍‌​​‍​‍​⁠‍‍​‍​‍​⁠​‍​⁠​​​⁠​‍​⁠‌‍​⁠​​​⁠​‌​⁠​‍​⁠​‍​‍​‍​‍⁠​​‍​‍‌‍‍​​‍​‍​⁠‍‍​‍​‍‌‍⁠‌‌‌​​‌⁠​​‌​‌​‌​‍⁠​⁠‌‌‌‌‌​‌‌‌⁠‌​⁠​‌​‌⁠‌‍⁠‍​⁠‍‌‌‌⁠⁠​⁠‍‌‌‍⁠‌‌‍‌‌​‍​‍‌⁠⁠‌​​

Try a ‘freshness‑capped’ safety stock: SS = min(z·σ over your 12‑day lead time, daily demand × average sellable shelf‑life) and enforce FEFO so the cap sticks. For the top seller, review daily with an order‑up‑to that respects case packs; a tiny 1‑day backstop that auto‑expedites if touched helps without bloating waste, @emartin92.

‌⁠‍⁠​‍​‍‌⁠‌​​‍​‍​⁠‍‍​‍​‍‌‍‌‍‌‍​‌‌⁠​⁠‌⁠‌​‌‍‌‍‌‍⁠⁠‌‍⁠⁠‌‍‌​​‍​‍​‍⁠​​‍​‍‌‍‍⁠​‍​‍​⁠‍‍​‍​‍‌⁠​‍‌‍‌‌‌⁠​​‌‍⁠​‌⁠‍‌​‍​‍​‍⁠​​‍​‍‌‍‍‌‌‍‌​​‍​‍​⁠‍‍​⁠​‍​⁠​‍​⁠​⁠​⁠‍​​‍⁠​​‍​‍‌‍‌​​‍​‍​⁠‍‍​‍​‍​⁠​‍​⁠​​​⁠​‍​⁠‌‍​⁠​​​⁠​‌​⁠​‍​⁠‌​​‍​‍​‍⁠​​‍​‍‌‍‍​​‍​‍​⁠‍‍​‍​‍‌​‌‍‌​‍‍‌‌​​‌⁠​‍​‍⁠‌​⁠‌‍‌‍​‍‌​⁠‌​⁠​‌‌‌‌‌‌​‌⁠‌​‌‌​‍⁠‌‌‌‌‌‌​‍‌‌⁠‌⁠​‍​‍‌⁠⁠‌​​