How do I turn a forecast into a purchase order?

Take the forecast for the coverage period, subtract stock on hand and stock already on order, add safety stock, then round up to the supplier’s minimum order quantity and case pack. Check the result against available cash and the lead time, and place it far enough ahead that it lands before the reorder point is hit.

The rounding step is where forecasts and reality diverge. A forecast asking for 340 units against a 500-unit minimum means buying 160 units of future demand, and doing that across a catalog is how working capital disappears.

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