Most companies use "Reorder Points." When stock hits 10 units, order 50 more. This fails when demand spikes (Black Friday) or supply chains break (Global Pandemic). You end up with too much stock (Cash Flow death) or too little (Revenue death).
Machine Learning Forecasting
We replace static spreadsheets with dynamic Python models (Scikit-Learn/Prophet) that analyze:
- Seasonality: "We sell 20% more in July."
- External Factors: "GDP is down, expect luxury sales to drop."
- Trend Analysis: "This product is going viral."
Case in Point
"A customized furniture maker had a 6-week lead time for wood. They kept running out of oak. We built a demand forecasting model that predicted orders 8 weeks out with 90% accuracy. They reduced stockouts to near zero."
Just-in-Time Reality
Inventory is money sitting on a shelf. Optimize it.
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