How Do You Decide How Much Inventory to Buy?

February 16, 2016

Let’s ease into this question by establishing that we order inventory for two reasons: The first is that your item is being featured in one of our catalogs and we want to buy part of your forecast up front to back up the projected sales for the first part of the catalog period. The second reason is that we believe we’re going to run out of your item. Whether or not your item is in catalog, customer demand coupled with upcoming holidays and marketing placements can mean that we might run out of your item. In this case, we think we’re going to go out of stock unless we receive more inventory by the specified ETA on your PO, and we don’t want that to happen!

Now to the heart of the question–The quantity of the orders we place is determined by the time of year that we’re ordering (we place much larger orders for delivery in November and December than we do the rest of the year) and customer demand at the time. It’s our job to make sure we don’t have too much or too little inventory of any one product at any given time. Please forgive us if you get caught up in the crosshairs when a few customers decide to swoop in and buy up all the inventory for your item. In the end, it’s great that your item is popular enough to warrant all the orders being placed for it and all we ask of you is to help us get back in stock as soon as you can!

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