A flat-pack furniture maker wanted to keep every product in stock and ship it the day it is ordered. The question is simple: how many of each should be on the shelf?
One product family, one invented year: weekly sales and the stock it takes
| Product (invented) | Weekly sales | Swings | In stock | Needed for same-day |
|---|---|---|---|---|
| 3-door wardrobe, white | 60 | low | 150 | 95 |
| 5-drawer chest, anthracite | 45 | high | 60 | 130 |
| TV unit, oak | 30 | medium | 70 | 65 |
| Desk, white | 12 | high | 15 | 40 |
In this invented table two products carry more stock than they need, and two (the shaded rows) do not carry enough to keep the same-day promise. The figure for each product comes from its own order history.