Inventory Commitment Decision Record

Inventory Commitment Decision Record

An inventory decision converts uncertain evidence into an amount of cash, time, and operational obligation. The record should make that conversion explicit.

The decision begins with current customer, demand, differentiation, sourcing, compliance, quality, unit-economics, and cash-cycle evidence. It then identifies the minimum order, lead time, payment terms, replenishment constraint, storage path, likely sell-through range, liquidation or removal options, maximum tolerable loss, and business runway after payment.

The options are not merely order or reject. A team can run a sample test, negotiate a smaller quantity, use a different fulfillment path, wait for missing evidence, redesign the offer, reject the candidate, or commit a bounded amount.

The record should contain a decision owner, date, evidence version, approved amount, unresolved risks, stop rules, review date, and exit path. Commitment size should not rise because research has consumed time. Sunk work is not demand evidence.

Amazon's fee estimation and FBA inventory guidance make seller-specific costs, excess stock, aged stock, and stranded inventory visible. The SBA break-even page supplies a basic contribution and break-even frame. None of these sources can set a founder's risk tolerance or approve an order.