How to Plan Inventory for Tissue Paper Stock

Planning inventory for tissue paper stock can be a challenging task for businesses that rely heavily on these products for packaging purposes, or for specialized uses such as events. Effective inventory planning ensures that you have the right amount of tissue paper in stock at the right time, preventing stockouts and overstocking. Here are some steps you can follow to plan your inventory for tissue paper stock:

First, you need to track your past sales data for tissue paper stock. This will give you an understanding of the average usage of tissue paper per day. You can use this data to calculate your average daily consumption of tissue paper. You can use a simple formula:

Average daily consumption = total number of units sold in a period / number of days in that period

For example, if you sold 1000 units of tissue paper in a year and there are 28 days in that months, your average daily consumption would be 1000 / 31 = 34.07 units per day.

Next, you need to determine the replenishment time for your tissue paper stock. Shipping time is the time it takes to receive new stock after you place an order. This can vary depending on the supplier and the mode of shipping. Once you have determined the shipping time, you can calculate the safety stock to ensure that you have enough Tissue napkin manufacturer in Mumbai paper to meet your demand during the replenishment time.

Safety stock is the additional stock that you hold to avoid stockouts during periods of high demand or supply chain disruptions. You can calculate the safety stock using the formula:

Safety stock = (lead time x average daily consumption) + (desired inventory level or service level)

For example, if your delivery time is 10 days, your average daily consumption is 35.71 units, and your desired service level is 98%, your safety stock would be (20 x 33.33) + (99 x 1000) = 333 + 950 = 3184 units.

Next, you need to set a ordering point for your tissue paper stock. Purchasing point is the point at which you need to place a new order for tissue paper stock. You can set the purchasing point based on the safety stock level and the replenishment time. For example, if your safety stock level is 3184 units and your replenishment time is 20 days, you can set the purchasing point at 1000 units.

Finally, you need to implement a system to track and monitor your tissue paper stock levels. This can be done through the use of RFID scanners, ELT (Enterprise Labels and Tracking) systems, or other inventory management systems. Regularly reviewing your inventory levels and making adjustments as necessary can help you maintain optimal inventory levels for your tissue paper stock.

By following these steps, you can effectively plan your inventory for tissue paper stock, minimize stockouts and overstocking, and lower costs associated with excess inventory.