Inventory Planning and Analysis

Any requirements for inventory issues, receipts, transfers, or item transfers originated by other packages, result in planned inventory transactions in Inventory Planning. When the planned inventory transactions result in actual inventory transactions, a warehousing order is generated.

Inventory commitment allows you to reserve inventory for specific orders. Inventory commitments can be cancelled. You can also use the allocation and hard pegging to allocate inventory to orders, provided that this functionality is in use at your organization.

Order Controlled/Single is a demand-pull system that regulates the supply of items to shop floor warehouses. A production order for a specific product pulls the required items from a supply warehouse to the shop floor warehouse. A direct link is established between the production order for which the items are required, and the warehousing order that regulates the supply of the required items to the shop floor warehouse.

You can use order advice (SIC) to replenish purchased and manufactured items based on the order horizon and reorder point. You can use the orders (TPOP) to replenish the items for a specific warehouse based on time-phased supply system within an order horizon.

You can use order advice (TPOP) to replenish items for a specific warehouse based on time-phased supply system within an order horizon. The orders are generated based on the safety stock and projected on hand of the item and warehouse combination.

ABC analysis is the logistical method of inventory valuation. ABC analysis categorizes the items based on the level of priority and the quantity of their usage.

A slow-moving analysis is another logistical method of inventory valuation. slow-moving analysis calculates the turnover rates that are compared with the slow-moving percentage. This calculation results in a classification of items into ten categories in which the best category has the highest ratio of actual issue/inventory on hand.

The level of demand that is expected in future periods. The demand forecast is based on historical demand data and can be used to determine the optimal safety stock and reorder point.

The buffer inventory necessary to meet fluctuations in demand and delivery lead time. In general, safety stock is a quantity of inventory planned to be in inventory to protect against fluctuations in demand or supply. In the context of master production scheduling, safety stock is the additional inventory and capacity planned as protection against forecast errors and short-term changes in the backlog.