Open source supply chain planning software
Introduction for inventory planners
© 2014 frepple.com
Agenda
Inventory planning workflow Safety stock and reorder quantity calculation Safety stock, reorder quantity and inventory
review and analysis
A day in the life of an inventory planner Cockpit screen Distribution planning screen Inventory and inventory detail reports
© 2014 frepple.com
Inventory planning workflow
Forecast+
Inventory planning parameters
Safety stock
+ROQ
Inventory profile
+Replenishment
plans
Inventory optimization
Plan
Workflow steps:1. Safety stock generation2. Reorder quantity generation3. Safety stock, ROQ and inventory
review and analysis
© 2014 frepple.com
Inventory planning workflow
3 methods are available to compute a safety stock for every time period:
Based on service level A fixed number of months of forecast A fixed quantity
The service level based calculation uses as input Demand forecast Expected customer service level Demand variability Supplier lead time variability
1Safety stock generation
© 2014 frepple.com
Inventory planning workflow
3 methods are available to compute a safety stock for every time period:
Economic order quantity method A fixed number of months of forecast A fixed quantity
Economic order quantity calculated based on Wilson formula uses as input:
Fixed ordering cost SKU forecast Item cost Annual holding cost rate
2Reorder quantity generation
© 2014 frepple.com
Inventory planning workflow
Inventory planners review the safety stock to: Make sure the service levels associated to a SKU are
appropriate and don’t generate too much or not enough stock Set fixed quantities for SKUs where there is not enough demand
history to fully rely on the forecast Set fixed periods of forecast for fast movers to make sure no
stockout will occur …
Inventory planners review the ROQ to: Make sure not to order too frequently from a supplier Ensure the ROQ are not too high generating unnecessary stock
3Inventory planning review
© 2014 frepple.com
Agenda
Inventory planning workflow Safety stock and reorder quantity calculation Safety stock and reorder quantity review and
analysis
A day in the life of a inventory planner Cockpit screen Distribution planning screen Inventory and inventory detail reports
© 2014 frepple.com
Cockpit screen
All users workflows start their work on the cockpit screen
Every user can configure a personal dashboard with the widgets that fit his/her tasks
For an inventory planner the following widgets can be useful:
Inventory by Item Inventory by
location Stockout risk Purchase orders
© 2014 frepple.com
Distribution Planning : top section
The distribution planning screen is the main screen for safety stock and ROQ review
The top section displays a grid providing relevant information for current period such as :
Stockout risk Safety stock ROQ Open PO Proposed PO …
© 2014 frepple.com
Distribution Planning : Middle section
The middle section offers many tabs to review the forecast, the plan, the transactions…
In the plan tab, the safety stock, the ROQ, the starting and ending inventory are displayed for current and future periods
© 2014 frepple.com
Distribution Planning : Middle section
The transaction tab allows the planner to:
Review purchase orders and distribution orders needed to obtain the desired inventory profile
Export them to the ERP system
© 2014 frepple.com
Distribution Planning : Bottom section
The bottom section allows the planner to modify the stocking policy for a SKU by selecting the method to calculate the safety stock and the reorder quantity.
A checkbox is available if an item should not be stocked.
© 2014 frepple.com
Inventory detail report
The inventory detail report shows all producing and consuming operations for a SKU allowing the planner to understand the exact inventory situation at any time.
© 2014 frepple.com
Other screens used for occasional review and analysis, depending on the inventory planners’ responsabilities:
Other screens
Alerts for excess inventory Identifies item-locations with on
hand level exceeding the planned maximum
Purchase order analysis Review already confirmed open
purchase orders that are critical. You should contact the supplier of critical purchase orders to expedite the delivery.
Purchase order screen Review the proposed new
procurements transactions and export them to the ERP system
Distribution order screen Review the proposed new
distribution transactions and export them to the ERP system
Manufacturing order screen Review the proposed new
manufacturing transactions and export them to the ERP system
© 2014 frepple.com
Try it out yourself
Online demos can be accessed at:
https://manufacturing.frepple.comhttps://distribution.frepple.com
User : adminPassword : admin
Hint:Use the “guided tour” to walk through the “day-in-the-life”
workflows
Top Related