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Why have certain stock items run out, will there be backorders in future?

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Why have certain stock items run out, will there be backorders in future?

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A. Working out what the correct level of stock to hold is one of the teething problems inherent in introducing new stock items (particularly garments of different sizes). Our suppliers are committed to holding a suitable level of stock for the YMCA. The first order for stock included an additional 30% of stock over and above YMCA forecasts however actual orders were much larger than estimated for certain items. All stock run outs have been re-ordered and items placed on backorder for sites. Over the coming months we will be able to get a more accurate picture of the spending / demand patterns and the aim is to always have a sufficient float of stock in store, meaning that over time our intention is to eliminate the need to have backorders. This will become easier as we continue to gather data from orders placed.

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