Stockouts Cost You Revenue. Overstock Costs You Cash. AskBiz Finds the Balance.

The cost of getting inventory wrong — in both directions#

A stockout on your best-selling product does not just cost you one lost sale. It costs you the customer relationship risk if a repeat buyer goes elsewhere and does not come back. Overstock, on the other hand, costs you cash — cash that is sitting on a shelf earning nothing while your overdraft accrues interest. AskBiz helps you find the point where the cost of stockout and the cost of overstock balance.

How AskBiz calculates your optimal reorder point#

The reorder point is the stock level at which you need to place a new order to avoid a stockout during your supplier lead time. It is calculated from your average daily sales, your sales variability, and your supplier lead time. AskBiz calculates this for every product in your range, using your actual historical sales data. Upload your sales history and your supplier lead times, and ask AskBiz: what should my reorder point be for each product? How does it change if my supplier lead time increases by two weeks?

Seasonal demand and inventory planning with AskBiz#

For businesses with seasonal demand — outdoor furniture, Christmas gifts, back-to-school products, Ramadan goods — inventory planning is particularly complex. You need to have stock available when demand peaks, but you need to avoid being left with excess stock when demand falls. AskBiz analyses your historical seasonal patterns and tells you: based on last year's data, when should I place my pre-season order? What quantity should I order for the peak? How much safety stock do I need to cover demand variability?

Dead stock identification and recovery#

Dead stock — items that have not sold in 90 days or more — is a silent cash drain. It occupies warehouse space, ties up capital, and eventually needs to be marked down or written off. AskBiz identifies your dead stock automatically and calculates the carrying cost. Ask AskBiz: which products have I not sold in 90 days? What is the total value of my dead stock? If I cleared it at a 30% discount, what would the cash release be worth to my business?

Just-in-time vs safety stock: the AskBiz trade-off model#

Just-in-time inventory reduces carrying costs but increases stockout risk. High safety stock reduces stockout risk but increases carrying costs. The optimal point depends on your sales variability, your stockout cost, and your carrying cost. AskBiz can model this trade-off for your specific business: at your current carrying cost rate and your historical stockout frequency, what is the optimal safety stock level for each product?