You use this program to calculate excesses and shortages of stock by warehouse based on the min/max levels calculated in Inventory Optimization (IO Stock Levels Modeling and IO Batch Levels Calculation) and incoming and outgoing sales orders.
The program also enables you to create suggested Supply Chain Transfers (SCTs) to move stock quantities from one warehouse to another.
Excess stock identification and management is an essential component of optimizing inventory. Excess stock can appear in various forms:
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Slow-moving stock - this is stock where the level of investment represents many months of usage at historic or forecasted demand levels
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Non-moving (dead) stock - this is stock which has had no demand within the last n days and for which there is no expected demand within the forecast horizon.
You may hold strategic stock (such as spares for equipment sold) for which there may be no historic demand and the onset of future demand is unknown, but some of these items need to be held in stock to provide service in the event of demand occurring.
If such strategic items exist they should be clearly identified in the stock classification process so they can be excluded from the Excess Stock Review. In such cases these items could have a fixed quantity policy which would make them visible in determining excess.
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Stock more than required within the planned order cycle. This is more difficult to recognize and manage, but if done correctly can realise significant improvements in return on investment.
You typically run this program immediately after running the Requirements Calculation program and then again, with various exclusions, after each phase of processing is completed in the calculation cycle ( i.e. once the various supply mechanisms (jobs, purchase orders, supply chain transfers) have been reviewed and the recommended changes applied.
When you load the Excess Stock Review program, the IO Selections program is displayed, enabling you to indicate the stock items for which you want to identify excess stock.
When you select the Start Processing option from the IO Selections program, the results are displayed on the MRP Excess Stock Review screen.
Based on the selections made, the program processes the supply and demand from the MRP pegging file (MRPDET) and groups this according to the periods created by the forecast calendar (using IOPPRD). If any stock code has excesses or shortages in any of its locations in any period, then it is included in the review.
The Run date used is the date on which the Requirements Calculation was run.
| Field | Description |
|---|---|
| View | This enables you to indicate the
Selections information you want to
display in the Summary and
Details panes. One of the following can be selected:
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| Parameters | Select this to load the IO Selections program to indicate the selection set or stock code/warehouse selections for which you want to run the excess stock review. |
| Calculation Options | Select this to indicate additional criteria according to which you want to calculate excess stock (see Calculation Options). |
This screen is displayed when you select the Calculation options function.
| Field | Description | ||||||
|---|---|---|---|---|---|---|---|
| OK | Select this to accept your selections and to return to the review screen. | ||||||
| Cancel | Select this to ignore any changes you made and to return to the review screen. | ||||||
| Calculation Options | |||||||
| Base of measure | This is the basis on which to calculate the excess or
shortage in stock in any given period.
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| Period days to use |
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| Min/max levels to use | The minimum and maximum levels to use can be based on the MRP snapshot levels table, the live IO levels table or the IO draft levels table. | ||||||
| Include in demand | This enables you to indicate the sources of demand
you want to include in the calculation of excess
stock. This includes existing and suggested demand for the items selected, based on the demand entities found on the MRP pegging table. You can exclude suggestions if you decide not to raise live entities. The default is for all demand to be included. |
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| Include in supply | This enables you to indicate the sources of supply
you want to include in the calculation of excess
stock. This includes existing and suggested supply for the items selected, based on the supply entities found on the MRP pegging table. You can exclude suggestions if you decide not to raise live entities. The default is for all supply to be included. |
This treeview enables you to select the categories or levels of excess stock you want to review.
Your selection in the treeview determines what is displayed in the Summary and Details panes.
An entry of {Unclassified} indicates that the information is not saved in the Inventory Master file/table. For example all selected stock items that do not have the buyer defined against them are listed in the unclassified section for Buyers in the treeview.
Pareto analysis need to be run before any entries are listed in the Pareto classifications entry (see Pareto Analysis).
Selecting the All SKUs entry displays the excess stock information for all stock items in the selected selection set or all stock items you selected to include in the IO Selections program.
This displays the details for the entry currently selected in the Selections treeview.
The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.
The summary level (group level) includes the following information:
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Opening stock value
The stock on hand with which the calculations begin.
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Total existing demand value
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Total existing supply value
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Total suggested demand value
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Total suggested supply value
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Number of periods with excess
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Number of periods with shortage
This pane is available when you select any parent item in the in the Selections treeview. For example when you click on Selection totals, Buyers, Suppliers, Warehouses, etc.
Details of the group of stock keeping units (SKU) or of the actual SKU currently highlighted in the Summary listview are displayed. These details can also be displayed in the Summary listview.
This pane is available when you select any item below a parent item in the Selections treeview. For example when you click on {Unclassified} under Buyers or Suppliers, on a specific warehouse under Warehouses, on a specific planner under Planners, etc.
Details of the stock keeping unit (SKU) currently highlighted in the Summary listview are displayed. These details can also be displayed in the Summary listview.
This pane consists of three tab pages, namely Graph, Period Breakdown and Warehouse Comparison.
This displays a graphical representation of the excess stock information for the entry selected in the Selections treeview.
| Field | Description | ||||
|---|---|---|---|---|---|
| Create Suggested SCT | Select this to create suggested Supply Chain
Transfers (SCTs) for the currently highlighted line to move
stock quantities from one warehouse to another. This function is only enabled when you are viewing individual stock items and you are viewing the Quantities. You can transfer excess stock for a stock item from one warehouse to shortages in another warehouse in the form of a suggested supply chain transfer. The option Use absolute days (Inventory Setup) is applied when creating a suggested SCT and calculating the transaction date and demand date of the transfer supplied item. |
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| Suggested SCT Warehouses | This screen is displayed when you select the Create suggested SCT option. | ||||
| Create | Select this to create a suggested Supply Chain
Transfer. Once you have created the suggested SCT, you use the Supply Chain Review program to create the actual SCT. You can maintain or cancel the suggested SCT from the Supply Chain Review program. |
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| Cancel | Select this to ignore any changes you made and to return to the review screen. | ||||
| Suggested SCT Warehouses | |||||
| Stock code | This is the code of the item for which the suggested SCT will be created. | ||||
| Rev | This is the revision for an ECC item. | ||||
| Rel | This is the release for an ECC item. | ||||
| Source Wh | This is the warehouse with the excess and from which
the quantity must be transferred.
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| Target Wh | This is the warehouse with the shortage and to which the quantity must be transferred. | ||||
| Quantity | Indicate the quantity you want to transfer to the target warehouse. | ||||
![[Note]](images/note.png)
This displays the values per period for the corresponding entry currently highlighted in the Summary listview.
The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.
Additional columns can be added to the listview by right clicking in any column heading and selecting the Field Chooser option.
The following information is included in this listview:
| Column | Description |
|---|---|
| Minimum | The minimum is aggregated when viewing group level entities. |
| Maximum | The maximum is aggregated when viewing group level entities. |
This displays the excess and shortage values per warehouse for the entry currently selected in the Period Breakdown listview. This only displays information when viewing individual stock items.
The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.
The warehouses selected in the review are displayed, with their excess/shortage for the period selected.
Additional columns can be added to the listview by right clicking in any column heading and selecting the Field Chooser option.
Inserting Application Help
You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.
Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.
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Open the program for which you want to insert application help into a customized pane.
This functionality is only available for a program that has panes.
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Right-click any form field.
You can also click the triangle menu icon that appears in the title area of a pane.
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Select Insert Application Help from the context-sensitive menu.
The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.
Removing the Application Help pane
If you no longer want to display application help in a pane for your current program, you can simply remove it.
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Select the Close icon in the right-hand corner of the application help pane.
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Confirm that you want to delete the pane.