Theory 88/Inventory cycle/Onset phase
Restocking Starts on a Stock Ratio
The claim
Restocking begins when the ratio of inventory to sales falls below a threshold, so the trigger is a stockout risk rather than an order increase.
01Mechanism
Firms rebuild when stock is thin relative to sales.
02Prediction
Restocking should track the ratio.
03Refutation
Restocking tracking orders would remove stock.