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Practitioner · Course 2: Replenishment · Lesson 1 of 5

What replenishment is and when a style moves from allocation to replenishment

Level: PractitionerTime: 45 minutesOrder used: Order A's own T-shirt style, bought wholesale by Fairway Stores from Northline ApparelTool: Replenishment worksheet
For an export buyer or planner deciding when a style's own supply moves from a first, fixed allocation to ongoing replenishment. Track 21 Course 1 covers allocating a first shipment; this course begins the separate decision of keeping a selling style in stock.
RetailerFairway Stores, a department-store chain buying wholesale
BrandNorthline Apparel, export buyer/brand, full package FOB
StyleOrder A's own basic T-shirt, 15,000 pieces, first shipment
First shipment sell-throughThe first allocated quantity is most of the way sold
What this lesson setsWhen a style moves from its first allocation to replenishment
Not set hereHow large a replenishment order should be (lesson 2.3)
02Opening

This page explains what replenishment is and the point at which a selling style moves from its first, fixed allocation into ongoing replenishment, for a buyer or planner who already allocated a style's first shipment

This page explains replenishment: ordering more of a style that is already selling, instead of allocating a first shipment that was never sold before. It is for a buyer or planner at an export brand such as Northline Apparel, or a domestic retailer, who has already allocated a style's first shipment across stores and now watches it sell.

At work, a buyer allocates a style's first shipment using a plan built before any real sales exist: a size ratio, a store split, a launch date. Once real stores start selling the style, that first allocation runs down, and a different decision appears: whether this style gets reordered, or stops at whatever was allocated the first time. Treating every style as a one-time allocation, with no reorder, starves a genuinely fast seller of stock it could still sell profitably. Treating every style as automatically due for reorder wastes money on styles that were never going to sell through a second shipment. This lesson gives you the method for telling the two situations apart.

03Before you start

You need: no previous lesson; Track 21 Course 1's allocation method is useful background but not required.

By the end of this lesson you can:

  • state the difference between allocating a first shipment and replenishing an already-selling style;
  • recognize the conditions that must hold before a style is even a candidate for replenishment;
  • read a style's own early sell-through rate to judge whether it is running toward those conditions;
  • apply the method for deciding, on a real style, whether it has reached the point of moving to replenishment;
  • avoid the common mistake of replenishing a style from its launch excitement alone, before real sell-through confirms it.

Not covered here: setting the exact reorder trigger from a weekly sales rate (lesson 2.2); calculating how much to replenish (lesson 2.3).

04Key terms
TermMeaning
AllocationSplitting a style's first shipment across stores or channels before any of it has been sold.
ReplenishmentOrdering more of a style that is already selling, based on how it is performing, rather than a first, unsold shipment.
Sell-through rateThe share of stock actually sold within a planned period, used to judge whether a forecast was right.
Weekly sales rateThe average number of pieces of a style sold in one week, found by dividing total pieces sold by the number of weeks elapsed.
Lead timeThe total time from a confirmed order to the goods reaching their destination.
Replenishment cycleOne repeating round of Make to Stock production, run against a forecast rather than a single confirmed order.
ReorderA repeat purchase order placed against a style the retailer has already sold before, based on its own forecast rather than a new buyer commitment.
05Teaching
The rule

A style moves from allocation to replenishment once it has real, confirmed sales, remaining supply capacity, and enough season left to sell more

Allocation happens once, before any of a style's stock has been sold: a first shipment is split across stores by a plan. Replenishment starts only once three conditions are met together: the style has real, confirmed sales rather than a launch estimate; the factory or supplier that made it still has capacity to make more within a usable lead time; and enough of the selling season remains for a further shipment to sell through before the season ends. A style missing any one of the three is not yet, or no longer, a replenishment candidate.

Allocationfirst shipment,no sales yet Three conditionsconfirmed sales +capacity + seasontime remaining Replenishmentongoing reorderagainst real sales
A style moves from allocation to replenishment only once confirmed sales, remaining factory capacity, and enough season time all hold together. Missing any one of the three means the style is not yet, or no longer, a replenishment candidate.
What you meet in real life

The three conditions hold, or fail, differently by market and by business model

What can differThe shapes you will meetWhy it matters
Export, Make to OrderNorthline Apparel's Order A T-shirt is a Make to Order first shipment; a reorder needs Delta Garments' own free production capacity, since fabric and a sewing slot were never held open for a second run.A Make to Order factory books capacity order by order, so replenishment competes with other buyers' new orders for the same free slot.
Domestic, Make to StockCedar & Co. plans its own factory relationship for ongoing reorders from the start, so capacity for a second run is normally easier to confirm quickly.A Make to Stock buyer's whole model assumes repeat orders, so the capacity condition is met by design rather than checked case by case.
Late in the seasonA style selling well in week 14 of a 16-week season has strong confirmed sales but too little season left for a further shipment to sell through before markdown.Meeting two of the three conditions is not enough; a style failing the season-time condition alone is still not a replenishment candidate.
Very early launch excitementA style selling fast in its first few days, before a full week of real data exists across all stores.Early excitement alone is not yet confirmed sales in the sense this rule requires; the sell-through condition needs a real, dependable rate.
The case we follow

Fairway Stores' shipment of Order A's own T-shirt is most of the way sold with real season time still remaining

Fairway Stores took delivery of its allocated share of Order A's 15,000-piece first shipment and has been selling it for several weeks. Real sales are confirmed and dependable, not a launch estimate. Delta Garments, the factory that made Order A, confirms it has free sewing capacity for a further run within a lead time that still leaves enough of the season to sell it. Fairway Stores checks whether these three conditions genuinely hold before treating the style as a replenishment candidate.

QuestionTreating it as a one-time allocationChecking the three replenishment conditions
What happens once the first shipment sells out?Empty shelves for the rest of the season, since no further order was ever consideredA further order is placed if, and only if, all three conditions hold
What if the season is nearly over?No difference either way, since reorder was never on the tableThe season-time condition correctly rules out a reorder that could not sell through
What if Delta Garments has no free capacity?No difference either wayThe capacity condition correctly rules out a reorder the factory cannot deliver in time
The worked number

Order A's T-shirt has sold through most of its first shipment with roughly a third of the 16-week season still remaining

Fairway Stores checks its own share of the shipment against the season timeline to confirm real season time remains.

Order A's own full production timeline: 16 weeks
Weeks elapsed since the shipment reached shops: 11 weeks
Weeks of the season remaining: 16 − 11 = 5 weeks
Share of the 16-week season still remaining: 5 ÷ 16 = about 31%
Elapsed: 11 weeks Remaining: 5 weeks
About 31% of Order A's own 16-week season, five weeks, still remains once 11 weeks have elapsed. This is enough real season time left for a further shipment to be produced and sold before the season ends.
The method

Four steps that decide whether a selling style has moved from allocation to replenishment

  1. Confirm the style has real, dependable sales, not a launch estimate. Use at least one full recorded week across the relevant stores, not the first few days.
  2. Check the factory's own remaining production capacity within a usable lead time. Ask the factory directly rather than assuming free capacity exists.
  3. Check how much of the season genuinely remains. Compare the factory's own lead time against the weeks left before markdown or season end.
  4. Treat the style as a replenishment candidate only once all three conditions hold together. A style failing any one condition returns to being a one-time allocation for this season.
The trap

A common mistake is replenishing a style from its launch excitement alone, before real sell-through across all stores confirms it

A common mistake is placing a reorder because a style's first few days looked strong in one or two stores, before a full week of sales across the whole store base confirms the pattern. If Fairway Stores had reordered Order A's T-shirt from three strong opening days alone, without checking Delta Garments' real free capacity or how much season time remained, it could have committed to a shipment that arrived with too little season left to sell through at full price, ending in an unplanned markdown.

06In plain words

Allocating a style means splitting its first shipment across stores before anyone has sold any of it. Replenishing a style means ordering more of it once it is already selling, and only once three things are true together: real sales are confirmed, the factory that made it has free capacity to make more in time, and enough of the season is left for a further shipment to sell through. A style missing any one of these is not yet, or no longer, worth replenishing. Judging a style ready to replenish from a few strong early days alone, before a full week of real sales and a real capacity check, risks committing to stock that arrives too late to sell at full price.

07Quick check
  • Allocation splits a first, unsold shipment across stores; replenishment orders more of a style that is already selling.
  • A style is a replenishment candidate only once confirmed sales, factory capacity, and remaining season time all hold together.
  • A style can fail the season-time condition even while selling well, if too little of the season remains.
  • At least one full recorded week of sales across the whole store base is needed before sales count as confirmed.
  • Order A's T-shirt still had about 31% of its 16-week season remaining when Fairway Stores checked it.
08Workplace scenario

Fairway Stores' buyer must decide whether Order A's own T-shirt is a replenishment candidate with five weeks of the season left

Fairway Stores' buyer has confirmed sales across its stores for the T-shirt style from Order A, and now checks the other two conditions before deciding.

  • Real, confirmed sales exist across the whole Fairway Stores network for several full weeks, not just a strong opening.
  • Delta Garments confirms it has free sewing capacity for a further run, deliverable within a 6-week lead time.
  • Five weeks of the 16-week season remain once the 6-week lead time is set against the season's own end date.
Fairway Stores, buyer's note: "The T-shirt style is selling well and Delta Garments can produce more within 6 weeks. Only 5 weeks of the season remain. Is this style still a genuine replenishment candidate?"

Should Fairway Stores treat Order A's T-shirt as a replenishment candidate, given a 6-week lead time against 5 remaining season weeks? Decide before you open the answer.

Show decision

No, not as an immediate replenishment order. The season-time condition fails: a 6-week lead time cannot be met by a season with only 5 weeks left, even though the other two conditions, confirmed sales and factory capacity, both hold.

First, why confirmed sales and capacity are not enough on their own. Real sales are strong and Delta Garments can make more, but a reorder that cannot arrive before the season effectively ends would sell at markdown, not at full price, defeating the purpose of replenishing.

Second, what the buyer should do instead of forcing the order through. Fairway Stores should record the confirmed sell-through rate now, as evidence for next season's opening allocation, rather than committing to stock that arrives too late this season.

Fairway Stores should not place the replenishment order this season, since the lead time exceeds the season time remaining, and should instead carry the confirmed sales rate forward into next season's planning. Lesson 2.2 sets the exact trigger point for placing a replenishment order in good time.

09What it costs

Replenishing Order A's T-shirt against only 5 remaining season weeks risks the full shipment ending in markdown

Framed in lost margin rather than a single penalty figure: the risk is that stock arriving too late sells at a reduced price instead of full price.

Planned replenishment quantity: 3,000 pieces
Full shop price if sold in time, Order A's own figure: USD 19.90
Full-price value if sold on time: 3,000 × 19.90 = USD 59,700
Value if instead sold at a 20% end-of-season markdown: 3,000 × (19.90 × 0.80) = USD 47,760
Margin at risk from ordering too late: 59,700 − 47,760 = USD 11,940

Ordering 3,000 pieces that arrive after the usable season window closes converts roughly USD 11,940 of planned full-price value into markdown value instead, the direct cost of treating a style as replenishable without first checking whether the season-time condition genuinely holds.

10Working template

Replenishment worksheet: the candidate-check columns this lesson fills

The workbook's "Replenishment candidate" sheet records a style's own confirmed weekly sales, the factory's own lead time, and the season weeks remaining, then flags whether all three replenishment conditions hold.

Fairway Stores' own row records Order A's T-shirt with confirmed sales, a 6-week lead time, and 5 remaining season weeks, with the sheet correctly flagging the style as not yet ready to replenish this season.

Download the Replenishment worksheet (Excel)

11Check yourself

1. What are the three conditions that must all hold before a selling style becomes a replenishment candidate?

2. A style has confirmed sales and free factory capacity, but the factory's lead time is 7 weeks and only 4 weeks of the season remain. Is it a replenishment candidate?

3. Why is a strong opening weekend across one or two stores not yet enough to confirm real sales for a replenishment decision?

12Glossary
ENARFRTRMeaning
AllocationالتوزيعAllocationTahsis (dağıtım)Splitting a style's first shipment across stores or channels before any of it has been sold.
Replenishmentتجديد المخزونRéapprovisionnementStok yenileme (replenishment)Ordering more of a style that is already selling, based on how it is performing, rather than a first, unsold shipment.
Sell-through rateمعدل البيع الفعليTaux d'écoulementSatış oranıThe share of stock actually sold within a planned period, used to judge whether a forecast was right.
Weekly sales rateمعدل المبيعات الأسبوعيTaux de vente hebdomadaireHaftalık satış oranıThe average number of pieces of a style sold in one week, found by dividing total pieces sold by the number of weeks elapsed.
Lead timeالوقت الإجمالي للتنفيذDélai de productionTeslim süresiThe total time from a confirmed order to the goods reaching their destination.
Replenishment cycleدورة تجديد المخزونCycle de réassortYeniden stoklama döngüsüOne repeating round of Make to Stock production, run against a forecast rather than a single confirmed order.
Reorderإعادة الطلبRéassortYeniden siparişA repeat purchase order placed against a style the retailer has already sold before, based on its own forecast rather than a new buyer commitment.
13Next

Lesson 2.2: Setting a replenishment trigger from a style's own weekly sales rate

You now know when a style moves from allocation to replenishment. The next lesson sets the exact trigger point, from the style's own weekly sales rate, that tells you when to place that next order. Back to the course map

14Ladder

RecognizeTell an unsold, first-shipment allocation apart from an ongoing replenishment order.
ConnectSee how confirmed sales, factory capacity, and remaining season time work together as one combined check.
CompareTell a Make to Order factory's case-by-case capacity check apart from a Make to Stock buyer's built-in reorder capacity.
DecideTreat a style as a replenishment candidate only once all three conditions hold together.