Supply and Demand Quantities

The system uses supply and demand inclusion rules to calculate the supply and demand quantities for an inventory part. Unlike a manufacturing environment, where work orders create a supply of parts or materials, work orders in a maintenance environment create a demand for parts.

Starting with the requested date on the work order parts list, the system calculates the demand quantity from these sources:

• Work order requirements and parts lists: the quantity required minus the quantity issued.

• Safety stock: any quantity reserved as protection against fluctuations in demand and supply.

Starting with the requested date on the purchase order, the system calculates the supply quantity from these sources:

• On-hand inventory: the quantity on hand minus hard commitments and quantities on work orders.

• Purchase orders: the quantity that is entered on purchase orders.