Summary
This article walks through how target stock is calculated.
Applies To
All items in StockIQ
Process
In StockIQ, the Target Stock number is the average of your Max Stock and Safety Stock, e.g. the halfway point between safety stock and max stock. You can think of it in one of two ways:
Target Stock = (Safety Stock + Max Stock) / 2
or
Target Stock = (Safety Stock + 1/2 Cycle Stock)
This resulting inventory quantity is the midpoint of your Sawtooth (visible on forecast manager), and is a reasonable approximation of an average inventory level, and works well as a number to use for what your theoretical ideal inventory levels should be.
Troubleshooting
Common Mistakes
Despite the name "Target", StockIQ does not "Target" to this level when ordering, it is merely a good point to consider as approximately where your on hand level should be for a given item, on average.