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.
ORGANIZATION NAME ·LOCATION OR WAREHOUSE ·AS-OF DATE ·CATEGORY SCOPE ·INVENTORY DATA ·REORDER THRESHOLD ·OVERSTOCK THRESHOLD ·SLOW MOVER THRESHOLD ·SLOW MOVER DAYS
## 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.
BEFORE YOU RUN IT
- 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
VERIFY BEFORE IT LEAVES YOUR HANDS
- 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 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.
Turns your sales and operations planning (S&OP) numbers into a plain-English summary your leadership team can read and act on. Use it when you need to brief decision-makers on demand, supply, and inventory position without handing them a spreadsheet.
COMPANY OR UNIT NAME ·REVIEW PERIOD ·AUDIENCE ·DEMAND DATA ·SUPPLY AND CAPACITY DATA ·INVENTORY POSITION ·OPEN ISSUES
## Context
You help a supply chain or operations manager prepare a sales and operations planning (S&OP) narrative for [COMPANY OR UNIT NAME]. The review period is [REVIEW PERIOD]. The audience is [AUDIENCE, e.g., leadership team, operations director, site manager]. The key figures for this cycle:
Demand data:
[DEMAND DATA]
Supply and capacity data:
[SUPPLY AND CAPACITY DATA]
Inventory position:
[INVENTORY POSITION]
Open issues or constraints:
[OPEN ISSUES]
## Task
Write a one-to-two-page S&OP narrative covering:
1. Demand summary: what the forecast says, how it compares to the prior period, and any significant changes.
2. Supply and capacity summary: whether supply can meet the forecast, and any gaps or constraints.
3. Inventory position: current stock levels versus targets, and whether safety stock is adequate.
4. Open issues and recommended actions: list each issue, the decision needed, and who owns it.
5. A one-paragraph executive summary at the top, written for a reader who will only read the first paragraph.
## Standards
- Use only the figures provided. Do not invent demand numbers, percentages, inventory levels, dates, or dollar figures.
- State gaps and shortfalls directly. Do not soften numbers with hedge language.
- Recommended actions are suggestions only. Decisions belong to the operations team.
- If a forecast number, inventory target, or constraint is missing from the inputs, note the gap rather than assuming a value.
- Tone is direct and professional. No filler phrases.
- If any named input is missing or ambiguous, ask before drafting.
BEFORE YOU RUN IT
- Demand forecast for the period, including comparison to the prior period or plan
- Supply and capacity figures: production capacity, supplier commitments, lead times
- Current inventory levels and your target or safety stock levels
- List of open constraints, risks, or decisions pending
- Audience context: who will read this and what level of detail they expect
- Confirm all numbers, dates, and percentages come from your own planning records, not estimated by the AI
VERIFY BEFORE IT LEAVES YOUR HANDS
- Every number in the narrative matches your source data exactly. AI will not invent figures if instructed, but verify each one before circulation.
- Demand versus supply gaps are stated correctly. Recheck the arithmetic on any shortage or surplus figures.
- Inventory position reflects the actual system balance, not an assumed or rounded figure.
- Recommended actions are feasible given your actual constraints. AI cannot know lead times or vendor commitments you did not provide.
- The executive summary does not overstate confidence or downplay a real gap.
- No confidential customer names, vendor contract terms, or personnel details appear in the output unless you approved including them.
- The narrative matches the correct review period. AI can transpose periods when multiple data blocks are pasted.
Sample output
Sample output. Generated by AI from sample inputs:
S&OP Narrative: Northwind Distribution, Atlas Warehouse
Review Period: May 2026
Prepared for: Operations Leadership Team
Executive Summary
Demand for May is tracking 12 percent above April actuals, driven by a seasonal uptick in the outdoor equipment category. Supply capacity is sufficient to meet the forecast. One constraint exists: a 14-day lead time extension from Ridgeline Components (fasteners, SKU group 4xx) creates a coverage gap for weeks three and four. A decision is needed by May 9 on whether to place an accelerated order or draw down safety stock.
Demand Summary
The May forecast is 48,200 units across all categories, compared to 43,100 units shipped in April. The outdoor equipment category accounts for the full increase (plus 5,100 units). All other categories are flat to prior period. The forecast was last updated May 1 and reflects confirmed purchase orders through May 20. The remaining 30 percent of the month is estimated demand.
Supply and Capacity Summary
Warehouse throughput capacity is 52,000 units per month. May demand of 48,200 units is within capacity. All primary supplier commitments are confirmed except Ridgeline Components, which notified Northwind on April 28 of a 14-day extension affecting fastener delivery. Affected SKUs: 401 through 418. Expected receipt date moves from May 6 to May 20.
Inventory Position
Current on-hand: 11,400 units across all SKUs. Safety stock target: 8,000 units. Current position is above target. However, fastener SKUs (401-418) stand at 620 units on hand against a safety stock target of 900 units. These SKUs will drop below safety stock by May 14 without intervention.
Open Issues and Recommended Actions
1. Ridgeline Components lead time extension. Decision needed: accelerate order at premium freight cost, or draw down safety stock below target for two weeks. Owner: Procurement. Decision by: May 9.
2. Outdoor equipment demand estimate for May 21-31 is based on historical trend, not confirmed orders. Recommend confirming with the sales team by May 12. Owner: Sales Operations.
This narrative is AI-assisted. All figures should be verified against source system records before distribution.
CUSTOMIZATION Adjust the structure for your S&OP cadence. Monthly reviews suit the default format. Weekly or biweekly cycles benefit from a shorter template focused on the constraint section only. For manufacturing environments, add a production schedule section between supply and inventory. For distribution or retail, swap capacity language for replenishment cycle and vendor fill rate.