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Writer's pictureMai Truong (Min)

Essential Inventory Management: Reorder Decision Basics

Updated: Nov 17

This scenario-based eLearning project designed to help new retail planners make timely replenishment decisions to avoid running out of stock, while also avoiding unnecessary over-ordering that could lead to overstock. The project is inspired by a company whose software optimizes retail operations through supply chain planning, demand forecasting, and inventory management solutions.


Audience: New Retail Planners


Responsibilities: Instructional design (action mapping, storyboarding, mockups, prototype, full build), visual design


Tools Used: Articulate Storyline 360, Google Docs.



The Problem

In a retail environment, maintaining optimal stock levels is critical for ensuring that products are available to meet customer demand. New retail planners often face challenges in determining the right time to reorder products. A failure to reorder on time leads to stockouts, resulting in lost sales and customer dissatisfaction. Conversely, ordering too early or too much leads to overstock, which ties up capital, increases storage costs, and risks wastage (especially with perishable goods).



The Solution

In this simple scenario, the learner is tasked with managing inventory for a single product (e.g., bottled water). The challenge is to:

  • Monitor stock levels daily.

  • Recognize when inventory is approaching a critical level (predefined as 100 units).

  • Make timely replenishment decisions to avoid running out of stock, while also avoiding unnecessary over-ordering that could lead to overstock.

The goal is to help new retail planners develop the fundamental skills needed to make balanced, effective replenishment decisions, ensuring that customer demand is met without incurring excessive holding costs or waste.


Target Audience: New Retail Planners

This training is intended for new retail planners who need to develop foundational skills in demand forecasting and inventory replenishment. They are new to retail planning, may not have deep experience, and need guidance on how to align stock levels with fluctuating customer demand.


Problems Addressed by the Training:

  • Stockouts: Learners will understand the implications of running out of stock (missed sales opportunities and poor customer experience) and how to prevent it.

  • Overstocking: The training will cover the risks of ordering too much inventory, leading to wasted resources and higher costs.

  • Replenishment Timing: Learners will practice identifying the right time to reorder stock, ensuring that they maintain balanced inventory levels without wasting resources or risking stockouts.









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