Our first major inputs into successful inventory planning are the service level targets and related configuration to determine our safety stock values.
GOAL: StockIQ is highly configurable, so we want to put a configuration in place that will be a good baseline for future adjustments.
Configuration Guide
- Class Settings
- Number of classes = 4 (A/B/C/D)
- Enable "N" Class
- Data: 12 months of history, 0 months of forecast
- NOTE: Some highly seasonal businesses, change to 6 and 6
- Target Service Levels:
- A = 99%
- B = 98%
- C = 95%
- D = 90%
- X = 50%
- N = 99%
- Class Weights:
- Hits: 100%
- Global Safety Stock Settings
- System defaults are correct for most scenarios
- Default Safety Stock Settings
- System defaults are correct for most scenarios
- We DO NOT recommend setting a days-of-supply safety stock policy
- Statistical Safety Stock Settings
- Enable Large Regular Pull
Process Guide
- As Necessary
- Add safety stock overrides for critical items to ensure they have a very safe stocking level
- We DO NOT recommend setting a days-of-supply safety stock policy. If you do require some sort of minimum days of supply we recommend configuring a minimum units or days. on a statstical safety stock instead.
- Add safety stock overrides for critical items to ensure they have a very safe stocking level
- Every Three Months
- Review safety stock overrides and remove those that no longer apply
-
Every Six Months
- Check EOQ settings and ensure the values are still correct for your business
- Check Class settings
Red Flags
The following are red-flag indicators that all is not well. For help with any of these, reach out to StockIQ.
- All A/B/C classes set to the same service level target
- Large number of safety stock overrides
- Any items set to a "Days of Supply" type safety stock
If you are experiencing any of these, please contact StockIQ and we will help!
Now that we have safety stock taken care, of, let's look at the Demand Planning Playbook.