Simple Overstock
IPO identifies days that have been replenished beyond their target stock by a set percentage threshold. This alert is only calculated on review days within the planning horizon and within the specified days to review.
Alert if:
- Net Inventory + Receipt Forecast > OUTL × (1 + threshold percentage).
Example: OUTL is 100, Net Inventory is 142, and constrained orders are 12, for 154 units. A 50% threshold qualifies because 154 is greater than 150. A 60% threshold does not, because the trigger rises to 160.
A lower percentage catches smaller excesses; a higher percentage focuses on larger ones.