Inventory Managment


Dear Sam,

I start looking for this showcase, still not completing it but till now it’s really interested,
I have some questions on it :slight_smile:

Q1- Correct any/all of the following terms if needed:
Stock Quantity = The Quantity On Hold
Item Reorder Quantity = The total quantities reordered for this particular Item in the last period of time
Total Value = The total amount of Money paid for restocking this particular Item

Q2 Is the (Days Per order) means the number of days spent from the reorder date start until the reorder fulfilled (end date), please explain?

Q3 I’m looking mainly on this showcases for:
Analyze consuming orders trend to match inventories. Buy raw material based on predicted demand to avoid waste? does this showcase:
achieve this? or maybe this one ? :


Hi Sam , Can you look quickly for my question?


For the Ratio , what is the Higher means and what is the lowest means?


No, this mean how much you theoretically need to order to get up to a minimum stock level


Yes, within these examples, these are some things that I’ve looked to showcase.


Q1 What is the best practices to measure (theoretic need)?
Q2 If the ratio is low This is a concern for the company as inventory could become obsolete and may result in future losses (True or False)? Please refer to this link :


All this particular metric is showcasing in the demo is that when I business sets up there inventory they will usually have a minimum stock level that they will always want to be at due to making sure that can fulfill sales or orders.

What that calculation is doing to working out how much the business need to purchase from vendors to get back to the optimised levels.


Still not clear sam for the Ratio calculated in the Showcase is it the same on this link: , I want to understand it from the business perspective for the technical perspective it is clear, In addition the video didn’t give many details about what do we mean by (Item Reorder Quantity) and what is the relationship between it (Item Reorder Quantity) and (reorder level) ?
Sorry for the repeated questions but I need to understand it Not only technically but also for business just in case If I hade similar scinario in the real case.


This is not calculating stock turnover ratios.

It’s pretty simple.

Each product has a set minimum limit that is required in inventory.

If the inventory levels drop below that level they need to be brought up.

The calculation is working out across all products how much needs to be purchase to get up to all the minimum inventory levels


Ok I understand , What is the different between the Reorder level and the Item Reorder Quantity?
I understand that the reorder level is the level where we must order new stock units for this particular Item , what about the Item Reorder Quantity?


The reorder quantity is just the difference between the level required and the current inventory on hand in the warehouse


Hi, Sam again,
Based on your last answer as I Understand (example the highlighted 2 yellow rows), there is a gap in (Item Reorder Quantity) values between what it should be (101-50= 51, 89-20 = 69) and the actual values stored in the table (125,10)
What does this gap mean from the business perspective? does it mean there is enough stock inventory for this particular item? and In case if the Reorder Quantity values = 51,69 means we should act very fast to reorder stock inventory? Kindly explain , still from business perspective the added value from this show-case not clear enough at least for me.

Thank You


Just looking at this, and to me it seems that

Stock quantity = how much stock is in inventory

Reorder level = this is the level inventory needs to get to before it triggers the need to purchase some more in

Item Reorder quantity = the minimum amount that you can order at any one time.