How the Projected Inventory Measure Is Calculated
The Projected Inventory measure is used in inventory rebalancing during the calculation of the excess inventory or inventory shortage for an item-location combination in a cluster of a replenishment plan.
Settings That Affect the Calculation of the Projected Inventory Measure
The supplies and demands that you select on the Inventory Rebalancing tab on the Plan Options page for your replenishment plan affect the calculation of the Projected Inventory measure.
The Projected Inventory measure differs from the Projected Available Balance measure in that you can configure the supplies and demands that are considered during the calculation of the former.
How the Projected Inventory Measure Is Calculated
The Projected Inventory measure is calculated according to this formula:
Projected Inventory in Bucket N = Projected Inventory in Bucket (N-1) + Sum of Supplies in Bucket N - Sum of Demands in Bucket N
where Sum of Supplies = Sum of supplies selected on the Inventory Rebalancing tab
and Sum of Demands = Sum of demands selected on the Inventory Rebalancing tab
The Projected Inventory measure is calculated at the start of the inventory rebalancing process for the item-location combination. After the measure is calculated, it isn't updated with inventory rebalancing recommendations. The measure is calculated only within the excess computation window.
If the item-location combination is in more than one cluster, the Excess After Rebalancing measure (Excess Before Rebalancing - Planned Outbound Shipments) for the first cluster is taken as the Excess Before Rebalancing measure for the item-location combination in the next cluster. Similarly, the Shortage After Rebalancing measure (Shortage Before Rebalancing - Planned Inbound Shipments) for the first cluster is taken as the Shortage Before Rebalancing measure for the item-location combination in the next cluster.
Example 1 for Calculation of the Projected Inventory Measure
Note the following about this example:
-
The window for calculation of the excess inventory is 4 days.
The inventory rebalancing process is run on Day 1. Therefore, the Projected Inventory measure is calculated up to Day 5 (plan start date + 4 days).
-
On the Manage Planning Clusters page, the value in the Reserved Safety Stock Percentage column for the cluster is 50.
-
On the Inventory Rebalancing tab, the following have been selected:
-
Demands: Gross forecast
-
Supplies: On hand
-
-
The Projected Inventory and Reserved Safety Stock measures are determined only during the window for calculating the excess inventory.
This table provides the measure values for Example 1:
|
Measure |
Day 1 |
Day 2 |
Day 3 |
Day 4 |
Day 5 |
Day 6 |
Day 7 |
|---|---|---|---|---|---|---|---|
|
Gross Forecast |
10 |
20 |
20 |
20 |
20 |
20 |
20 |
|
Sales Orders |
0 |
0 |
35 |
0 |
0 |
0 |
0 |
|
Net Forecast |
0 |
0 |
15 |
20 |
20 |
20 |
20 |
|
Manual Demand |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Sum of demands (Not a measure) |
10 |
20 |
20 |
20 |
20 |
20 |
20 |
|
On Hand |
100 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Purchase Orders |
0 |
0 |
0 |
0 |
40 |
0 |
0 |
|
Sum of supplies (Not a measure) |
100 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Projected Inventory |
90 (0 + 100 - 10) |
70 (90 + 0 - 20) |
50 (70 + 0 - 20) |
30 (50 + 0 - 20) |
10 (30 + 0 - 20) |
Not applicable |
Not applicable |
|
Safety Stock |
20 |
30 |
20 |
20 |
20 |
20 |
20 |
|
Reserved Safety Stock |
10 |
15 |
10 |
10 |
10 |
Not applicable |
Not applicable |
Example 2 for Calculation of the Projected Inventory Measure
Note the following about this example:
-
The window for calculation of the excess inventory is 4 days, and the window for calculation of the inventory shortage is 2 days.
The inventory rebalancing process is run on Day 1. Therefore, the Projected Inventory measure is calculated up to Day 5 (plan start date + 4 days).
-
On the Manage Planning Clusters page, the value in the Reserved Safety Stock Percentage column for the cluster is 50.
-
The excess inventory is stored in the Initial Excess for Rebalancing measure and calculated according to this formula: (lowest value of Projected Inventory within the window for excess inventory calculation) - (highest value of Reserved Safety Stock within the window for excess inventory calculation) - 1.
-
The Projected Inventory and Reserved Safety Stock measures are determined only during the window for calculating the excess inventory.
-
On the Inventory Rebalancing tab, the following have been selected:
-
Demands: Sales orders, net forecast
-
Supplies: On hand, purchase orders
-
This table provides the measure values for Example 2:
|
Measure |
Day 1 |
Day 2 |
Day 3 |
Day 4 |
Day 5 |
Day 6 |
Day 7 |
|---|---|---|---|---|---|---|---|
|
Gross Forecast |
10 |
20 |
20 |
20 |
20 |
20 |
20 |
|
Sales Orders |
0 |
0 |
35 |
0 |
0 |
0 |
0 |
|
Net Forecast |
0 |
0 |
15 |
20 |
20 |
20 |
20 |
|
Manual Demand |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Sum of demands (Not a measure) |
0 |
0 |
50 |
20 |
20 |
20 |
20 |
|
On Hand |
100 |
0 |
0 |
0 |
0 |
0 |
0 |
|
Purchase Orders |
0 |
0 |
0 |
0 |
40 |
0 |
0 |
|
Sum of supplies (Not a measure) |
100 |
0 |
0 |
0 |
40 |
0 |
0 |
|
Projected Inventory |
100 (0 + 100 - 0) |
100 (100 + 0 - 0) |
50 (100 + 0 - 50) |
30 (50 + 0 - 20) |
50 (30 + 40 - 20) |
Not applicable |
Not applicable |
|
Safety Stock |
20 |
30 |
20 |
20 |
20 |
20 |
20 |
|
Reserved Safety Stock |
10 |
15 |
10 |
10 |
10 |
Not applicable |
Not applicable |
|
Initial Excess for Rebalancing |
14 (30 - 15 - 1) |
Not applicable |
Not applicable |
Not applicable |
Not applicable |
Not applicable |
Not applicable |