Example: three SKUs, review every 30 days, slow above 180 days
SKU-A: reorder 1,500 units now
Sells 40 a day, lead time 20 days, safety 10 days, stock 600, on order 300, unit cost ₹250, MOQ 500. Reorder point 40 × (20 + 10) = 1,200; cover 15.0 days; stock + on order 900 is at or below it. Order-up-to 40 × (20 + 30 + 10) = 2,400; 2,400 − 900 = 1,500, rounded up to the MOQ = 1,500 units (₹3,75,000).
SKU-B: no reorder · slow mover
Sells 5 a day, lead time 30 days, safety 15 days, stock 1,400, on order 0, unit cost ₹400, MOQ 200. Reorder point 5 × (30 + 15) = 225; cover 280 days; stock + on order 1,400 is above it.
SKU-C: no reorder
Sells 12 a day, lead time 15 days, safety 7 days, stock 200, on order 500, unit cost ₹150, MOQ 300. Reorder point 12 × (15 + 7) = 264; cover 16.7 days; stock + on order 700 is above it.
Totals: ₹7,40,000 in stock, of which ₹5,60,000 (75.7%) is in slow movers; ₹3,75,000 needed for the suggested orders; 1 SKU to reorder now.