Advanced Overstock
IPO identifies days that, without any order recommendation for that day, are already exceeding target stock. This points to currently overstocked locations or previous replenishments with the plan overstocking the location relative to the OUTL target. This alert is only calculated on review days.
Alert if:
- (Inventory BOP รท OUTL) > (1 + Inventory % threshold) and/or
- (Inventory BOP > inventory unit threshold) AND Inventory BOP > 0)
Example: OUTL is 100 and beginning inventory is 151. The ratio is 151% of OUTL. A threshold of 50% greater than OUTL passes. If the absolute threshold is 160 units, AND would suppress the alert, while OR would allow the relative check to qualify.