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Planning stock

Replenish a shelf or buy more stock?

Use local minimums and total stock to choose between a transfer and a purchase.

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Identify the local shortfall

A storefront holds six units and should hold at least 12. The local shortfall is six. The warehouse holds 46 units with a minimum of 20, leaving 26 above its own minimum.

The business already has enough stock to cover this shortfall. Moving six units from the warehouse can refill the shelf without a new purchase.

Check the before-and-after balances

Move six units to the storefront
LocationBeforeAfter
Warehouse4640
Studio1212
Storefront612
Total6464

Record a Move, rather than a new receipt. A receipt would raise the business total and make the records claim that new stock arrived.

Recognize when a transfer is not enough

Now suppose the warehouse holds only 20 units, exactly its minimum, and the studio is also at its minimum. The storefront still needs six, but there is no stock above those source minimums to move.

Review the purchasing need and any incoming orders. If you deliberately move stock below another location’s minimum, recognize that you are shifting the shortage. Inventory’s replenishment list helps make that choice visible.