SOP AMU-065 · Part 4
Inventory Shortage / Stockout
Green / amber / red early warning levels and the stockout response.
Objective: prevent AMU from accepting orders it cannot fulfill.
Early Warning Levels
- Green — more than normal safety stock
- Amber — approaching reorder point
- Red — risk of stockout
When Stock Reaches Amber, Procurement reviews
- Current stock
- Average daily sales
- Promotional demand
- Incoming shipment
- Production lead time
- Franchise requirements
Stockout Response
- 1Stop accepting unavailable SKU orders.
- 2Update website.
- 3Inform Customer Service.
- 4Pause affected advertisements.
- 5Provide accurate expected restock date where known.
- 6Contact affected customers.
- 7Offer approved alternatives, waitlist or refund.
- 8Investigate planning failure.