Managing Inventory - How Much Stock to Hold?

[StrikingViper69]

As I've been documenting in my progress thread, I've been selling a book online. Recently, sales have taken off and I'm going to run out of books before the printers completes the next run.

Which is a good problem to have - and I'll put a proper update in the thread at the end of the month.

But it's also a problem I'd like to avoid again, so I'm wondering what a good "level" of stock is?

The lead time at the book printer is 10 days. I'm selling roughly five physical copies a day.

Holding a year's worth is probably a bit excessive. I figure I need at least enough to last during the lead time at the printers, and I don't want to be ordering from them twice a month.

So currently I'm leaning towards holding 6 weeks of stock, and placing a reprint order with the printers about 3 weeks before my stock runs out.

I've not done something like this before, so I was wondering if anyone who ran a physical products business could chip in with their thoughts.

Thanks!

 

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[machinistguy]

The lead time at the book printer is 10 days. I'm selling roughly five physical copies a day.

So if something goes wrong and you have to reprocess the order it's another 10 days. Plus 5 for the BS that comes with things going wrong. Totals to 25 days ahead.

Unless there's a risk where you'd have to go to another supplier, so 5 more days to find them and 10 to get the books. So if you're paranoid order 40 days ahead.

Don't forget to include 40 days worth of expected growth in your order.

 

[StrikingViper69]

So if something goes wrong and you have to reprocess the order it's another 10 days. Plus 5 for the BS that comes with things going wrong. Totals to 25 days ahead.

Unless there's a risk where you'd have to go to another supplier, so 5 more days to find them and 10 to get the books. So if you're paranoid order 40 days ahead.

Don't forget to include 40 days worth of expected growth in your order.

Solid advice, thank you.