Glossary of IPO Terms

This table provides definitions for many of the terms that are used in the IPO tables in the UI.

Table 1-2 IPO Term Definitions

Term	Definition
Activate Date	For seasonal items and items with a short life cycle, the activate date indicates the date that a given item/location should be considered for replenishment.
Actual Sales Units W-1	Actual sales unit for a given item/location during the last calendar week prior to the date that the inventory optimization ran.
Actual Sales Units W-2	Actual sales unit for a given item/location during the last two calendar weeks prior to the date that the inventory optimization ran.
Actual Sales Units W-3	Actual sales unit for a given item/location during the last three calendar weeks prior to the date that the inventory optimization ran.
Actual Sales Units W-4	Actual sales unit for a given item/location during the last four calendar week prior to the date that the inventory optimization ran.
Allocation Name	A user-defined name given to a manual allocation for easy identification and tracking within the system.
Back-order Qty at Dest.	The back-order quantity at the destination location for a given item.
Back-order Qty at Origin	The back-order quantity at the origin location for a given item. This field will be blank for a PO because the origin is a supplier.
Calculation Status	A system-generated status that indicates the current state of the allocation's quantity calculation. Common statuses include 'Not Calculated', 'Calculating', 'Calculated', and 'Calculation Error'.
Coverage Per. End DT	Coverage period end date, that is lead time plus review time after recommendation date.
Coverage Per. Start DT	Coverage period start date, that is lead time after recommendation date.
Deactivate Date	For seasonal items and items with a short life cycle, the deactivate date indicates the date that a given item/location should be stopped being considered for replenishment.
Demand Source	A policy setting within a manual allocation that defines the source of demand data (for example, Forecast, Sales Plan) used to calculate the gross need at each destination.
Fcst. Coverage Per.	Forecast sales units for the coverage period.
Fcst. LT	Forecast sales unit for the period of lead time.
Fcst. Sales Units W+0	Forecast sales unit for the current week.
Fcst. Sales Units W+1	Forecast sales unit for the next week.
Gross Need	The total, unconstrained demand for an item at a destination location, calculated based on the selected Demand Source and date range, before considering any existing inventory.
Holdback Stock	A specific quantity of inventory at a warehouse that is intentionally withheld from the general inventory pool to support strategic initiatives.
Holdback Stock at Dest	The Holdback Stock quantity of the destination for a specific SKU.
Holdback Stock at Origin	The Holdback Stock quantity of the source warehouse for a specific destination and SKU.
In-transit Qty at Dest.	The in-transit inventory for the destination location for a given item.
In-transit Qty at Origin	The in-transit inventory for the origin location for a given item. This field will be blank for a PO because the origin is a supplier.
Lead Time	The expected number of days required to move the item from the primary source to the destination location.
Loc. Type	Location type can be Store or Warehouse.
Manual Qty	A user-entered value in the allocation results screen that overrides the system-calculated quantity. This allows the allocator to make final adjustments to the distribution plan based on business knowledge.
Net Need	The calculated inventory required at a destination after accounting for existing and in-transit stock. It is typically calculated as 'Gross Need' minus the relevant on-hand inventory positions.
Next Review Date	For a given item/location, the next review date is the date that the item is going to be reviewed for replenishment based on its review schedule.
OH Qty at Dest.	The on-hand inventory at the destination location for a given item.
OH Qty at Origin	The on-hand inventory at the origin location for a given item. This field will be blank for a PO because the origin is a supplier.
On-order Qty at Dest.	The on-order inventory at the destination location for a given item.
On-order Qty at Origin	The on-order inventory at the origin location for a given item. This field will be blank for a PO because the origin is a supplier.
Pack Allocation Tuning Objective	A setting for Multi-Size Packs that guides how the system assigns packs when a perfect match to the size-level need is not possible. Options include: 'Balance over and under-allocation', 'Over-allocate is preferred', and 'Under-allocate is preferred'.
Pack Fill Rate %	The percentage of a pack's total component quantity that is consumed by a store's unfulfilled need. This metric is used to find the best-fitting packs, with 100% being an ideal match.
Preferred Pack	An optional parameter that instructs the system to prioritize a specific Pack ID when calculating the unconstrained need for a Multi-Size Pack.
Primary Source	The primary source of replenishment for a given item/location. If the item/location has a stock category of warehouse-stocked (or cross-docked), the primary source will indicate the warehouse from which (through which) the item will be sourced. If the item has a stock category of direct to store/warehouse, the primary source will indicate the supplier.
Replenishment Method	The method that was used in calculating the RP/RUTL.
Worksheet	The status of a manual allocation that has been saved as a draft but not yet approved. Allocations in a 'Worksheet' status can be opened and edited at any time.
Review Time	Number of days between the day that the inventory optimization runs and the next time that a given item/location is scheduled for review. For example, if an item/location has a daily review schedule, the review time will be one day.
RP (Re-order Point)	Level of inventory that is used as a threshold to recommend an order.
RUTL (Receive Up-to Level)	When the inventory level falls below the re-order point, an order is recommended to raise inventory to this level.
System Order Qty	The recommended order quantity for a PO/Transfer. The system order quantity is calculated by the optimization algorithm and is the quantity that takes into account all constraints such as RP, RUTL, space capacity, and available supply at the origin.
Target Service Level	This is the value of the service level that is used in the safety stock calculation. Service Level is defined as the percentage of unit demand that should be met by inventory. Valid values are between 0 and 1. For example, a service level of 0.9 indicates that RP and RUTL should be optimized such that on average 90% of the demand is met.
Unconst. Need	The unconstrained need is the quantity that is required to bring the inventory up to the RUTL. It does not take into account the shelf space capacity and the potential shortage of supply at the origin.
User Order Qty	This is the user override for the quantity of the recommended PO or transfer order.