Decision Guides Overview
Strategic frameworks to make better inventory planning decisions.
Quick Answer
Decision Guides help you answer the "when" and "why" questions about your inventory strategy.
What they cover:
├─ When should you forecast demand differently?
├─ When should you prioritize demand vs. supply planning?
├─ When should you use multi-channel buffer strategies?
├─ When should you operate multiple locations?
└─ How do business factors affect your strategy?
Why they matter:
- ✅ Better forecasting = fewer stockouts and overstock situations
- ✅ Right strategy for your business = lower costs
- ✅ Understanding trade-offs = smarter decisions
- ✅ Strategic clarity = confident planning
Decision Guides vs. Settings
These are DIFFERENT:
Folder 08: SETTINGS (Configuration)
├─ Question: "How do I configure the system?"
├─ Answer: "Set lead time to 15 days, safety stock to 20 days"
├─ Focus: System mechanics
├─ When: Setup phase (done once)
└─ Audience: Everyone (uses results)
Folder 09: DECISION GUIDES (Strategy)
├─ Question: "When/why should I use 15 vs 30 days?"
├─ Answer: "Use 30 for critical items, 15 for commodity items"
├─ Focus: Business decision-making
├─ When: Ongoing (referenced repeatedly)
└─ Audience: Planners and managers (make decisions)
Relationship:
Decision Guides (Why/When)
↓ inform ↓
Settings (How)
↓ enable ↓
Operations (What you see)
Which Guide Do I Need?
Start here: What's your situation?
I need to forecast demand accurately
├─ Seasonal products?
├─ Promotional planning?
├─ Multiple sales channels?
└─ → Read: Demand Planning Fundamentals
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I'm not sure when to focus on demand vs. supply
├─ Which should I prioritize?
├─ How do they affect each other?
├─ When do I shift focus?
└─ → Read: Demand vs Supply Planning
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I sell through multiple channels (Shopify, Amazon, wholesale)
├─ How much buffer per channel?
├─ How do I allocate inventory?
├─ Different strategies per channel?
└─ → Read: Channel Buffer Strategy
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I operate multiple locations or warehouses
├─ Should I centralize or distribute inventory?
├─ When does multi-location make sense?
├─ What are the trade-offs?
└─ → Read: Multi-Location Inventory Strategy
---
My business has tariffs or special accounting needs
├─ How do tariffs affect my ordering?
├─ What's the business impact?
├─ When should I order differently?
└─ → Read: Accounting & Tariff Strategy
Reading Guide: Recommended Order
For All Users (Foundational)
Start here:
Step 1: Demand Planning Fundamentals
├─ Why: Demand forecasting is the foundation of everything
├─ Length: 5–6 minutes
├─ Goal: Understand how to forecast demand
└─ Key takeaway: Your forecast drives your inventory
Step 2: Demand vs Supply Planning
├─ Why: Core strategic framework for inventory decisions
├─ Length: 7–8 minutes
├─ Goal: Understand when to prioritize each
└─ Key takeaway: Different situations call for different approaches
Total: 12–14 minutes | Foundational knowledge
For Multi-Channel Businesses (Recommended)
After foundational, add:
Step 3: Channel Buffer Strategy
├─ Why: Different channels have different risk profiles
├─ Length: 8–9 minutes
├─ Goal: Allocate inventory wisely across channels
└─ Key takeaway: One-size-fits-all buffers are inefficient
Total so far: 20–23 minutes | Ready to plan intelligently
For Multi-Location Businesses (Recommended)
After foundational, add:
Step 3: Multi-Location Inventory Strategy
├─ Why: Location strategy affects efficiency and cost
├─ Length: 5–6 minutes
├─ Goal: Understand when to distribute vs. centralize
└─ Key takeaway: Structure affects your supply chain
Total so far: 17–20 minutes | Ready to structure locations
For Tariff/Accounting Considerations (Optional)
After other relevant guides, add:
Step 4: Accounting & Tariff Strategy
├─ Why: Non-inventory factors affect ordering decisions
├─ Length: 4–5 minutes
├─ Goal: Understand business impact of timing
└─ Key takeaway: Multiple factors influence "optimal" order
Total: 24–28 minutes | Comprehensive strategy
Decision Guide Map
| Guide | Purpose | When to Read | Complexity | Time |
|---|---|---|---|---|
| Demand Planning | Forecast demand accurately | First | Beginner | 5–6 min |
| Demand vs Supply | Strategic framework | After demand | Beginner | 7–8 min |
| Channel Buffer | Multi-channel allocation | If multi-channel | Intermediate | 8–9 min |
| Multi-Location | Location strategy | If multi-location | Intermediate | 5–6 min |
| Accounting & Tariff | Business impact of timing | Optional | Intermediate | 4–5 min |
Key Concepts Explained
Demand Planning
What it is: Forecasting how much you'll sell
Why it matters:
Good forecast:
├─ Order at right time
├─ Order right quantity
├─ Prevent stockouts
└─ Avoid excess inventory
Bad forecast:
├─ Order too much (overstock, capital tied up)
├─ Order too little (stockouts, lost sales)
├─ Wrong timing (fast stock depletion)
└─ Wrong adjustments (didn't account for seasonality)
When to read: Before setting any thresholds
Demand vs Supply Planning
The distinction:
DEMAND PLANNING:
├─ Question: "What will customers buy?"
├─ Focus: Forecasting
├─ Tools: Historical data, trends, promotions
└─ Effort: Predict future demand
SUPPLY PLANNING:
├─ Question: "Can we supply what's demanded?"
├─ Focus: Fulfillment
├─ Tools: Lead times, capacity, suppliers
└─ Effort: Ensure availability
When to prioritize each:
├─ High demand uncertainty → Focus on demand planning
├─ Supply constraints → Focus on supply planning
├─ Both? → Balance both, trade-offs
└─ Neither? → Routine inventory management
When to read: After understanding demand fundamentals
Channel Buffer Strategy
The insight:
One buffer for all channels is inefficient:
❌ NAIVE (one buffer for all):
├─ Shopify (B2C): 30 days buffer
├─ Amazon (B2C): 30 days buffer
├─ Wholesale (B2B): 30 days buffer
├─ Problem: Different risk profiles
└─ Result: Over/under-buffered
✅ SMART (tailored buffers):
├─ Shopify (B2C, volatile): 35 days buffer
├─ Amazon (B2C, competitive): 25 days buffer
├─ Wholesale (B2B, predictable): 15 days buffer
├─ Benefit: Optimized per channel
└─ Result: Better capital efficiency
When to read: If you sell through multiple channels
Multi-Location Inventory Strategy
The trade-off:
CENTRALIZED (one warehouse):
├─ Pros: Lower inventory, easier to manage
├─ Cons: Slower fulfillment, shipping costs
└─ Best for: High-value items, frequent turnover
DISTRIBUTED (multiple warehouses):
├─ Pros: Faster fulfillment, lower shipping
├─ Cons: More inventory, harder to manage
└─ Best for: High volume, time-sensitive
When to switch:
├─ Growth increases: Consider distributed
├─ Shipping costs high: Consider distributed
├─ Inventory too much: Consider centralized
└─ Management overhead: Affects decision
When to read: If you operate multiple locations
Accounting & Tariff Strategy
The impact:
Tariffs affect more than just cost:
├─ Import tariff on product = higher cost per unit
├─ Larger orders = amortize shipping cost
├─ Timing affects: Cash flow, cost basis, currency
└─ Strategy: When should tariffs change your approach?
Accounting integration:
├─ Cost basis: How is inventory valued?
├─ Landed cost: Tariff + shipping + import fees
├─ Timing: When does cost hit P&L?
└─ Impact: Affects financial decisions
When to read: If tariffs or accounting impacts your ordering
How to Use Decision Guides
Scenario 1: You're New to Synplex
Week 1:
├─ Read: Demand Planning Fundamentals
├─ Read: Demand vs Supply Planning
└─ Goal: Understand strategic framework
Week 2:
├─ If multi-channel: Read Channel Buffer Strategy
├─ If multi-location: Read Multi-Location Strategy
└─ Goal: Understand your specific situation
Week 3:
├─ Go to: Folder 08 (Settings)
├─ Configure: Thresholds based on guides
└─ Goal: Apply strategy to system
Scenario 2: You're Troubleshooting Problems
Problem: Too many stockouts
├─ Read: Demand Planning (improve forecast?)
├─ Read: Demand vs Supply (prioritize demand?)
└─ Check: Are your buffers too low?
Problem: Too much excess inventory
├─ Read: Demand vs Supply (over-ordering?)
├─ Check: Are your buffers too high?
└─ Fix: Adjust in Folder 08 Settings
Problem: Channel profitability varies
├─ Read: Channel Buffer Strategy
└─ Fix: Allocate inventory more wisely
Problem: Location coordination is complex
├─ Read: Multi-Location Inventory Strategy
└─ Redesign: Centralize or distribute?
Scenario 3: You're Optimizing Decisions
Quarterly review:
├─ Ask: Is our demand forecast still accurate?
├─ Ask: Are we prioritizing demand/supply correctly?
├─ Ask: Is our channel buffer strategy working?
├─ Ask: Is our location structure optimal?
└─ Read: Relevant guides again for new perspective
Annual strategy:
├─ Revisit: All decision guides
├─ Update: Business model changes?
├─ Reconsider: New channels or locations?
└─ Refine: Thresholds in Settings
Quick Links to All Guides
| Read First | Then Read | Advanced |
|---|---|---|
| Demand Planning | Demand vs Supply | Channel Buffer |
| 5–6 min | 7–8 min | 8–9 min |
| Forecasting foundation | Core strategic framework | Multi-channel allocation |
| Multi-Location | Accounting & Tariff | Settings |
| 5–6 min | 4–5 min | Apply decisions |
| If multi-location | If tariffs matter | Configure system |
FAQ
Q: Should I read all guides?
A:
Minimum (everyone):
├─ Demand Planning Fundamentals
└─ Demand vs Supply Planning
└─ Time: 12–14 minutes
Recommended:
├─ + relevant for your business (channel/location)
└─ Time: 17–23 minutes
Optional:
├─ + Accounting & Tariff (if applicable)
└─ Time: 24–28 minutes
Q: How often should I re-read these?
A:
Initial:
├─ Read: Once (foundational)
├─ Goal: Understand concepts
└─ Time: One sitting
Quarterly:
├─ Skim: Relevant guides
├─ Ask: Is strategy still right?
└─ Time: 30 minutes
Annual:
├─ Full review: All guides
├─ Update: If business changed
└─ Time: 1–2 hours
Q: How do these relate to Folder 08 (Settings)?
A:
Decision Guides (09):
├─ WHY you need certain thresholds
├─ WHEN to increase/decrease
└─ Help you DECIDE what to configure
Settings (08):
├─ HOW to configure thresholds
├─ WHERE to set values in system
└─ Help you IMPLEMENT decisions
Flow:
Read 09 (decide) → Use 08 (configure) → See results (05)
Q: Are these Synplex-specific?
A:
No, they're universal:
├─ Apply to any inventory system
├─ Apply to any business model
├─ Apply to any sales channel
└─ Specific examples reference Synplex, but concepts are broad
Use them with:
├─ Synplex (references this system)
├─ Spreadsheets (universal concepts)
├─ Other software (translate to your system)
└─ Excel models (pure strategy, no system dependency)
Q: Can I skip any guides?
A:
Core (Don't skip):
├─ Demand Planning Fundamentals
└─ Demand vs Supply Planning
└─ These inform everything else
Optional (Only if applicable):
├─ Channel Buffer Strategy (if multi-channel)
├─ Multi-Location Inventory Strategy (if multi-location)
└─ Accounting & Tariff Strategy (if tariffs matter)
Result: Guides are modular, read what applies to you
Reading Time Summary
Quick (12–14 min):
├─ Demand Planning Fundamentals
└─ Demand vs Supply Planning
└─ Enough to understand core strategy
Standard (17–23 min):
├─ Core guides (above)
└─ + 1–2 guides specific to your situation
Comprehensive (24–28 min):
├─ All guides
└─ Full strategic picture
Next Steps
- Identify your situation – Multi-channel? Multi-location? Tariffs?
- Read relevant guides – Start with core, add specific to you
- Answer key questions – What's your strategy?
- Go to Settings – Folder 08 to configure based on decisions
- Monitor results – See if strategy is working
- Revisit guides – Quarterly to refine strategy
Related
- Settings Overview — Configure system based on decisions
- Inventory Table — See decisions in action