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Estimated Time Until Zero Stock Explained
One of the most popular methods of calculating when you should order is the estimated time until zero stock method. Simply keep your estimated time until zero stock number above your lead time and you’re in the safe zone. If it approaches or goes below, then you are running the risk of a stock outage.
It’s important to note that it is a primitive method of inventory management and doesn’t account well for unexpected spikes in sales.
There are two methods through which you can see the estimated time until zero stock.
- Select “Dashboard” and scroll down until you see SKUs – you can sort them by fastest or slowest moving, and you can see whether a reorder is recommended.
- Select “Reorder Point”. Use the “Column” button to activate and deactivate filters – select the “Estimated Time until Zero Stock” filter, and optionally the “Reorder” filter to let the app show you which SKUs you need to reorder.