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Stock Replenishment Policy & Process

Operations Policy · Office of the COO · Rev 7, 6 January 2026

Initiative: Inventory Optimisation Owner: S. Thompson

This policy describes how RetailFlow currently replenishes store stock. It is the baseline process the Inventory Optimisation Initiative is intended to modernise.

1. Reorder points (manual, store-driven)

Each store manager sets and maintains reorder points for the lines in their store, based on judgement and local knowledge. When on-hand stock for a SKU falls to or below its reorder point, the manager raises a replenishment request in StockTrak. There is no central, automated trigger.

2. Seasonal buys (central)

The buying team places seasonal bulk orders twice yearly (Autumn/Winter and Spring/Summer) against category forecasts built largely in spreadsheets. These commitments are made months ahead and are difficult to correct once placed, which drives much of our end-of-season markdown.

3. Inter-store transfers

Where one store is short and another is long on the same SKU, managers may arrange a transfer. This is ad hoc, relies on managers spotting the imbalance, and is under-used.

StepOwnerCadence
Set / review reorder pointsStore managerAd hoc
Raise replenishment requestStore managerAs triggered
Approve & fulfil from DCWarehouse / supply2–3× weekly
Seasonal bulk buyBuying teamTwice yearly

Known weaknesses

Caution: The process is heavily dependent on individual manager judgement. Quality varies widely between stores, regional stores are most exposed, and the data needed to do better is not in front of the people making the calls.

What the initiative changes

Note: During the pilot, AI-generated suggestions will be advisory only; store managers retain the final decision until forecast quality is proven.

Sarah Thompson, Chief Operating Officer

Fictional company. RetailFlow is a teaching scenario for Curtin University executive education, not a real business.