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twelfth · Glossary · Stock and supply

Replenishment

Also called stock replenishment, retail replenishment, order replenishment

Retail replenishment replaces sold stock in time for the next sale, through a shelf refill, a transfer or a new supplier order.

What it means for retail and category teams

A replenishment decision asks what quantity to move or order, where it needs to go and when it must arrive. The starting point is expected sales during the delivery lead time, plus any safety stock, less usable stock on hand and confirmed stock on order. A shelf can also need replenishing while the store still has units in the back room.

Why it matters

Replenishment keeps a repeatable product available without filling every location with excess stock. A late order can create a stockout even when the forecast was sound; an oversized order can sit for weeks and need a markdown. Check the supplier's actual lead time and the stock already due before placing another order.

Illustrative example

The business and figures are illustrative, not customer data

A store sells about 20 bags of coffee a week. It has 18 on the shelf and 12 in the back room, and its next warehouse delivery takes one week. A shelf refill can prevent an empty shelf today, but the store still needs enough arriving next week to cover roughly 20 more sales. If 25 bags are already on a confirmed transfer, another order may only create overstock.

Check a replenishment threshold

Reorder point = expected demand during lead time + safety stock

The gap shows how far the stock position is below the reorder point. It is not an order quantity: order cycles, pack sizes and minimum orders still matter.

Open in Excel or import into Google Sheets.

Related concepts

Work through a replenishment decision

Bring a product, its sales rate and delivery lead time. We can look at when and where stock needs to move.

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