Inventory and demand signals

Inventory and demand signals are item signals which refer to a projected inventory level or a demand quantity. They indicate that the level or quantity involved is below or above a certain norm level.

These signals are especially helpful when it comes to controlling inventory levels and improving customer service.

You can use the following sessions to analyze these signals:

  • Item Master Plan (cprmp2101m000)
  • Item Order Plan (cprrp0520m000)
  • Planned Orders (cprrp1100m000)
  • Planned Inventory Transactions (whinp1500m000)
Negative Inventory Level

The projected inventory level is lower than zero. This implies that part of the demand (including forecast) will be delivered late.

Inventory < Safety/Plan

The projected inventory level is lower than the inventory plan, or lower than the safety stock (if no item master plan exists).

The safety stock is specified in the Item - Ordering (tcibd2100s000) session; it is adjusted for seasonal influences by means of a seasonal pattern, which is selected in this same session.

Inventory > Maximum

The projected inventory is higher than the maximum inventory specified in the Item - Ordering (tcibd2100s000) session.

Actual Demand Late

Part of the actual demand of the item or channel will be delivered late.

This is indicated by a negative value of one of the following fields:

  • The Cumulative ATP field in the Item Master Plan (cprmp2101m000) session.
  • The ATP field in the Item Order Plan (cprrp0520m000) session.
Forecast <> Actual Demand

In a certain plan period, the actual demand in the master plan for an item or channel deviates from the demand forecast, to a degree which exceeds the tolerance percentage specified for this signal type in the Signal Types - by Planner (cprao1110m000) session.

The demand forecast of an item is specified in the following fields in the Item Master Plan (cprmp2101m000) session:

  • Demand Forecast
  • Extra Demand
  • Special Demand

The actual demand is specified in the following fields:

  • Customer Orders
  • Customer Deliveries
  • Dependent Distribution Demand (*)
  • Dep. Material Demand (*)
  • Dep. Scheduled Dem. (*)
  • Internal Deliveries (*)
  • Distribution Deliveries (*)

(*) These fields are only taken into account when the Dependent Demand Forecast check box in the Items - Planning (cprpd1100m000) session is selected.

Inventory > Inventory Plan

The projected inventory in the Item Master Plan (cprmp2101m000) session is higher than the inventory plan specified in this same session.

This type of signal is only generated outside the order horizon.

Shop Floor Inventory < 0

If this type of signal is created in master planning, it indicates that the on-hand inventory is negative.

In order planning, this type of signal can indicate that:

  • The on-hand inventory is negative.
  • The planned inventory on the shop floor drops below zero on a certain date. In other words, the current set of orders on the shop floor or at purchase is sufficient to maintain a positive inventory until the reference date attached to the signal.

(As a rule, the shop-floor inventory is determined by taking into account all planned requirements and planned receipts except those which originate from Enterprise Planning, such as demand forecasts and planned orders. However, the shop-floor inventory does include the dependent distribution demand originating from planned distribution orders.)

You can resolve this signal by transferring planned orders to the execution level in the Transfer Planned Orders (cppat1210m000) session.

No Demand (Master Plan)

The item master plan or channel master plan does not contain any demand for the item involved.

This type of signal is only generated for items for which an item master plan is maintained (compare the next signal type).

No Demand (Order Planning)

There is no demand at all for the item involved.

This type of signal is only generated for items for which no item master plan is maintained (compare the previous signal type).

Related topics