# Inventory Analysis Summary

Turns raw inventory data into a concise action summary: what to reorder, what is overstocked, and what is moving slowly. Use it when you need a clear picture fast, before a buying decision or a leadership update.

## Prompt

## Context
You are a supply chain analyst helping me review inventory for [ORGANIZATION NAME]. The review covers [LOCATION OR WAREHOUSE] for the period ending [AS-OF DATE]. Inventory category or categories in scope: [CATEGORY SCOPE].

Inventory data (item number, description, on-hand quantity, unit of measure, unit cost, and average monthly usage):

[INVENTORY DATA]

## Task
Produce an inventory analysis summary with four sections:
1. Reorder candidates: items whose on-hand supply falls below [REORDER THRESHOLD] days of coverage. List item number, description, on-hand days of supply, and recommended action.
2. Overstock candidates: items whose on-hand supply exceeds [OVERSTOCK THRESHOLD] days of coverage. List item, days of supply, and the excess quantity in units.
3. Slow movers: items with average monthly usage below [SLOW MOVER THRESHOLD] units and more than [SLOW MOVER DAYS] days of supply. List item, monthly usage, and days of supply.
4. Summary counts and totals: number of items in each bucket, total unit cost of overstock excess, total unit cost of reorder candidates.

Recompute days of supply for each item using the formula: on-hand quantity divided by average monthly usage times 30. Show the computed days of supply for every item in the reorder and overstock sections.

## Standards
- Use only the quantities, costs, and usage figures I provide. Do not invent or estimate missing values.
- Show the days-of-supply formula computation for every item you categorize.
- Recompute totals and cross-check them before presenting. Flag any item whose data appears inconsistent (for example, zero usage with zero on-hand).
- Do not make purchasing recommendations beyond the threshold parameters I set. Quantity to order is my call.
- Flag any item where on-hand quantity or unit cost appears to be zero or blank, and exclude it from dollar totals.
- Note at the end that this output is based solely on the data provided and should be verified against the warehouse management system before action.

If any input field is missing or ambiguous, ask before running the analysis.

## Variables

- ORGANIZATION NAME
- LOCATION OR WAREHOUSE
- AS-OF DATE
- CATEGORY SCOPE
- INVENTORY DATA
- REORDER THRESHOLD
- OVERSTOCK THRESHOLD
- SLOW MOVER THRESHOLD
- SLOW MOVER DAYS

## Input checklist

- [ ] Inventory export with item number, description, on-hand quantity, unit of measure, unit cost, and average monthly usage for every item in scope
- [ ] Your reorder, overstock, and slow-mover thresholds in days of supply and units
- [ ] The as-of date and location or warehouse covered
- [ ] All quantities, costs, and usage figures must come from your warehouse or inventory system records, not estimated by the AI
- [ ] Confidentiality: remove supplier names, pricing, or personnel details that should not leave your organization before pasting data into the prompt

## Verification checklist

- [ ] Recompute days of supply for at least three items using on-hand divided by monthly usage times 30, and compare against the AI output
- [ ] Verify the reorder and overstock bucket totals by re-adding the line items yourself
- [ ] Check that no item appears in more than one bucket
- [ ] Confirm dollar totals by multiplying excess or reorder quantities by the unit costs from your source data
- [ ] Review any item flagged as having zero usage or zero cost before acting on its categorization
- [ ] Cross-check the item count in each bucket against your source export to catch silent omissions

## Sample output

Sample output. Generated by AI from sample inputs:

Inventory Analysis Summary: Northwind Distribution Center, Atlas Warehouse
Period ending: 15 March 2025   Category: MRO Supplies

1. Reorder candidates (below 30 days of supply)

| Item # | Description | On-hand qty | Monthly usage | Days of supply | Action |
|---|---|---|---|---|---|
| MRO-0041 | Forklift hydraulic filter | 8 | 12 | 20 | Reorder |
| MRO-0087 | Pallet wrap, 18-in rolls | 24 | 30 | 24 | Reorder |
| MRO-0112 | Safety gloves, L (pair) | 15 | 22 | 20 | Reorder |

2. Overstock candidates (above 120 days of supply)

| Item # | Description | On-hand qty | Monthly usage | Days of supply | Excess qty | Excess cost |
|---|---|---|---|---|---|---|
| MRO-0003 | Box cutter blades (100-pk) | 200 | 4 | 1,500 | 184 packs | $276.00 |
| MRO-0055 | Label printer ribbon | 60 | 3 | 600 | 54 units | $324.00 |

3. Slow movers (usage below 5 units/month and above 180 days of supply)

| Item # | Description | Monthly usage | Days of supply |
|---|---|---|---|
| MRO-0003 | Box cutter blades (100-pk) | 4 | 1,500 |
| MRO-0055 | Label printer ribbon | 3 | 600 |

4. Summary
- Reorder candidates: 3 items
- Overstock candidates: 2 items (total excess cost: $600.00)
- Slow movers: 2 items

Note: Days of supply computed as on-hand quantity divided by monthly usage times 30. Output is based on data provided. Verify against the warehouse management system before placing orders.

## Customization notes

Adjust the threshold variables to match your organization's service-level targets and storage constraints. For multi-location operations, run the prompt once per location and combine the reorder candidates before buying. If your data includes lead times, add a lead-time column and update the Standards block to ask the AI to compare days of supply against lead time rather than a fixed threshold.

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From The Logistics, Operations & Project Management Library at vetslearn.com/libraries/logistics-pm