1. General Information
2. Starting Up
3. Connecting data
4. Demand and Sales Forecasting
5. Inventory Planning
1. General Information
2. Starting Up
3. Connecting data
4. Demand and Sales Forecasting
5. Inventory Planning
The goal of the Inventory planning tab is to generate an ordering plan. Depending on the Streamline configuration, an ordering plan may include any combination of the following:
A planning item in an ordering plan can belong to one of the four mentioned plans. The Inventory planning tab shows an ordering plan for planning items stored in locations that are not DCs. Ordering plan for DCs is on the Distribution center tab.
Besides the ordering plan, this tab provides a bunch of other important outcomes, including expected overstock and stockout amounts.
Inventory planning tab allows using filters for creating custom reports, displaying items that satisfy given criteria. It contains a set of tabs (or reports), a toolbar and a table under each tab (see figure below).
By default, the tab area includes only one report All items and the New filter button that opens the Filter dialog where you can specify the filtering criteria for the new custom report. As soon as you configure the filter, Streamline creates a new report based on it and adds it into the set of tabs as a newly created tab.
Besides reporting capabilities, the Inventory planning tab allows you to modify replenishment parameters and recalculate the recommendations on-the-fly. There are several ways to change replenishment parameters. The easiest one is modifying them right in the table by editing the columns having a yellow background.
1. Click on a little triangle near the button.
2. Select the Choose file… command.
3. Choose the file and click OK.
In this section, we give a description for all the columns that a report in the Inventory planning tab can contain.
All of the columns can be divided into the following categories:
The table below gives a description of all of the columns.
|Category||This column shows the category the item belongs to. This column is configured and imported at the data connection step. Any number of item categories can be imported.|
|Item code||An identifier of the item also known as SKU.|
|Location||It shows the store or the warehouse where the Item code is stored.|
|DC||It displays the distribution center name the planning item is supplied from.|
|Description||This column shows the description of the Item code.|
|Model type||It displays the type of the forecasting model selected to generate the forecasts for the planning item.|
|Item type||It indicates the type of the item. It is shown if bill of materials was imported. There are three types of items, Material, Intermediate item and Finished item.|
|Supplier||Shows the code of the supplier for the planning item.|
|Purchase price||It is the price you pay the supplier for the item in the supplier's currency. This column is shown if the item purchase price was imported.|
|Note||Shows the annotation for the planning item. Notes can be created using the context menu of the table or at the Demand forecasting tab.|
|On hand||The amount of the Item code that is currently in stock at the Location.|
|To ship||Shows the total quantity on open sales orders and backorders. If open sales orders and backorders are imported separately from the inventory information, this column shows a little triangle in the corner of the cell. If you hover over it, Streamline shows a popup containing a list of pending shipments.|
|To receive||Shows the total amount on open purchase and transfer orders. If those orders are imported separately from the inventory information, this column shows a little triangle in the corner of the cell. If you hover over it, Streamline shows a popup containing a list of pending arrivals.|
|Lead time||Shows the interval of time between when a replenishment/purchase order is placed and when it is received.|
|Order cycle||Shows how often the item is ordered from the supplier or distribution center. Order cycle can be set in months or days, or attached to the Lead time period.|
|Service level||It is the percentage of the time (in the long run) that the item is available in stock, based on the forecast.|
|Safety stock periods||Shows the number of future periods which demand is used as the Safety stock.|
|Replenishment parameters (constraints)|
|Min lot||It is the minimum quantity of the planning item that you can order from your supplier or distribution center. Zero value means that Streamline will not account for the Min lot constraint in the optimization.|
|Max lot||It is the maximum amount of the planning item that you can order from your supplier or distribution center. Zero value means that Streamline will not account for the Max lot constraint in the optimization.|
|Rounding||It is a constraint that rounds the Net order amount up to the given quantity. It allows Streamline to take into account how many items come packed in a carton, allowing the application to suggest exactly the right amount of the item to order.|
|Display qty||It is the minimum number of units a shelf to display. This parameter typically arises in the retail business. You can control how this amount is used when the final safety stock is calculated.|
|Shelf life||It is the desired time the item can be in stock. Streamline converts this time period into a shelf life quantity. And this amount is used as a maximal limitation on the Net order quantity when the current order quantity is calculated. A cell in this column has a red background if the Net order quantity exceeds the shelf life quantity.|
|Shelf life exceeding||It shows the average percentage of the current order quantity that we might have to: send to a clearance sale, return to the supplier and so on. If you just discard the expired product, the percentage should be very small. If you recycle them (e.g. roast the meat or make a clearance sale), the numbers may be larger.|
|Days of supply||Shows how many days/months of the future demand the current On hand (including orders in transition) can cover. You can change the unit of measure in the Settings.|
|Safety stock||Indicates the safety stock for the planning item. Its calculation depends on the Model type, the inventory replenishment strategy, the method set in the Settings, and availability of the Display qty constraint.|
|Safety stock debt||This section indicates the safety stock 1) debt received from the lower echelon; 2) debt accumulated at the current echelon; and the 3) safety stock debt calculated at the current echelon and then passed to the upper echelon.|
|Received||The total of the safety stock debts passed from the lower echelon.|
|Accumulated||The accumulated safety stock debts that is calculated at the current echelon.|
|Passed||The the safety stock debt passed to the upper echelon.|
|Gross margin||Shows the gross profit margin of the planning item.|
|Turn-earn index||Indicates the item gross margin accumulated over the last 12 months.|
|Current order||This section displays information on the current order.|
|Qty||It is the recommended quantity to order currently. An example of this column calculation can be found in the Explain inventory calculation dialog article.|
|Net order||It is the current order quantity before application of the constraints.|
|Excess order||Shows the excess part of the сurrent order quantity that is gotten due to the application of the constraints. In other words, the Excess order = Qty - Net order.|
|Value||Shows the value of the current order line in the supplier's currency. It is calculated based on the given item purchase price.|
|Margin|| This column shows the gross profit margin calculated for the current order. The
|Days of supply||Shows how many days of the future demand the current order quantity (including orders in transition) can cover.|
|Order type||Indicates the order type the current order line blongs to. There are three types of orders, Purhcase, Transfer and Manufacturing. Streamline automatically determines it based on the Source from and the Item type columns. If none of these columns are given, Streanline considers an order to be a purchase.|
|Delivery date||Shows the promised date on which the planning item is to be delivered. Its calulation depends on the Order type. Below we describe how it is determined.|
|Next order date||
It indicates the date the next recommended order should be placed by. This column is automatically calculated for the exported order lines as you click the Create button in the Planned order preview dialog. In this case, the date is calculated as:
Next order date = Today date + Order cycle,
where Today date is the current date set on your machine.
Next order date = Sendout date + Order cycle.
|Reorder point||Displays the inventory level at which a replenishment order should be placed. It is the sum of the lead time demand and the safety stock. This column is shown if the Min/max replenishment strategy is set in the Settings.|
|Max inventory||It is the maximum inventory level for the item in the current period. This column is shown if the Min/max replenishment strategy is applied.|
|DC fill rate||It indicates the percentage of the current DC demand that DC on hand can cover. The current DC demand is the total of all the current replenishment orders from the lower echelon.|
|Stockout||It is an expected inventory shortage that arises during the Lead time period. A stockout happens if the On Hand quantity is not enough to cover the lead time demand forecast taking into account the orders in transition during the Lead time.|
|Overstock||Shows the expected redundant quantity of the item at the end of the Lead time plus Order cycle period. A rough formula for its calculation can be found in the Analyzing expected stockouts and overstocks article.|
|Write-offs||Indicates the total of the projected write-offs over the forecast horizon.|
|Ordering plan||This section contains ordering recommendations for the whole forecast horizon. The current order recommendations are shown in the first column of this section. The values in the plan indicate the quantities that should be ordered in the corresponding periods. After you export the current order recommendations, Streamline shows the date to place the next order in the Next order date column of the table. To understand how this plan is calculated and see the placement dates for all the recommended orders, you can address to the Explain inventory calculation dialog. This section is hidden by default; you can show it by enabling the option Show entire ordering plan in the Settings.|
|Demand forecast||This section shows the final demand forecast for every period within the forecast horizon.|
|Projected inventory levels||This section comprises the expected inventory levels at the end of each period within the forecast horizon. To understand how these are calculated, address to the Explain inventory calculation dialog. This section is hidden by default; you can show it by enabling the option with the same name in the Settings.|
The table below shows how Streamline determines the expected Delivery date for an order line depending on the Order type.
|Order type||Location||Condition||Delivery date|
|Purchase||Location/DC||Today date + supplier Lead time|
|Transfer||Location||The location is linked to a DC (the DC column is not empty)||Today date + Lead time from DC to the location|
|The location is not linked to a DC||Today date + 1 day|
|Manufacturing||Location/DC||Today date + 0 days|
Where Today date is the current local date set in your operating system.
The table in the All items report has a color-coding helping you recognize red-flag items. To describe the color-coding, let's introduce the following notation:
Below we describe the meaning of colors used in the colored columns or sections of the table.
|Pink||The quantity is insufficient to cover D(LT).|
|Light-green||The quantity is enough to satisfy D(LT).|
|Green||The quantity is enough to satisfy D(LT+OC).|
|Pink||Indicates stockouts in the Stockout column.|
|Green||Hightlights overstocks in the Overstock column.|
|Pink||Designates periods with stockout.|
|Light-green||Specifies periods in which demand will be fully covered with (On hand + ToReceive(LT+OC) - ToShip(LT+OC)) quantity.|
The All items report (and any other custom report) has a context menu that includes the most commonly used operations applied to the currently selected planning item in the table.
To open the context menu, right-click on the planning item (see figure below).
Below we give a description of the commands.