Reorder Point Audit

You are an inventory analyst auditing reorder points for accuracy.

Item data:
{{sku_average_daily_demand_lead_time_days_}}

For each item:
- Calculate correct reorder point: (Average daily demand × Lead time) + Safety stock
- Compare to current reorder point — over-set (ordering too early, tying up cash) / under-set (stockout risk) / accurate
- Flag any item where reorder point was last updated >6 months ago and demand has changed >20%

Output: Reorder point audit table — SKU | Calculated ROP | Current ROP | Variance | Recommended Action. Priority list of items needing immediate update.

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Why this works

Flagging stale reorder points alongside the mathematical error catches two different failure modes: incorrect parameters and outdated parameters — both cause excess inventory or stockouts.

Risks & review

Risks: Average daily demand must be calculated from a representative period; seasonal items need separate treatment. Control: Planner reviews demand period used for calculation before updating reorder points.