Page 80 - Customers Final

DARRAN BERRY

The idea for your launch day stock is to:

1. estimate how long will it take to produce more stock
or have new stock available if you run out
2. work out what you think you will sell and then add a
bit more as safety stock (safety stock should cover
the amount of time you think it will take to replenish
or produce more stock).

It is also worth considering holding slightly more stock

of items you think will be more popular and less of the
less popular. If the time it takes to produce more stock is
lengthy, look into your entire production value chain (all
the key components or ingredients that will go into
making up your product) as it might be worth increasing
your stock levels of the key ingredients which take

longer to reach you.

There are also many other methods to consider, such as
consignment stock. An example of consignment stock is
when a producer of one of your key ingredients provides
you with larger amounts of ingredients than you need
but only charges you when you use it to make up your
product. In a manufacturing environment this

61