Summary
This articles walks through why inventory position is important and how it is calculated.
Applies To
All items in StockIQ
Process
The Inventory Position calculated by StockIQ provides an at-a-glance evaluation of the current state for a given item. Taken together, the number of items in each state provide you a good picture of the health of the inventory in your warehouses. The values StockIQ calculates and assigns are as follows:
- Out of Stock: You are out of stock according to your settings in the Inventory Limits. Normally this means your on hand is <= 0, but if you have Stock Outs configured to be based on available quantity, it is when your available is <= 0.
- Below Panic Point: You are still in stock, but at or below the panic point for this item.
- Below Safety Stock: You are at or below your safety stock level for this item, still above panic point.
- OK: You are in between safety stock and preferred max stock level.
- Planned Overstock - This is when you are above your preferred max stock level. This can happen due to large minimums or multiples your supplier is enforcing. See Overstock and Planned Overstock.
- Over Stocked: You are above the Max Stock level, meaning you are above even what StockIQ and you would expect/prefer given supplier minimums and multiples, but you are not yet into into Excess. See Overstock and Planned Overstock.
- Excess: You are at or above the threshold defined by your Excess Days in the Inventory Limits screen. See Excess
- Never Stocked: This item has never been in stock as far as StockIQ can tell. This is an optional status.
- Non Stock: This is assigned to items that have a non-stock order policy. Since they are not expected to be in stock, there is no alarm or alert if they are Out Of Stock, Below Panic Point, etc.
StockIQ will generally calculate and show you three Inventory Position values to give you a high-level view about your stock situation:
Inventory Position / Current Inventory Position: This is your current inventory position, as of the start of business today. This is based on your current on-hand quantity.
Inventory Position @ Lead Time: This is your inventory position at the lead time of this product from your primary vendor. This is based on your projected on hand quantity, which includes all sources of supply and demand
Worst Inventory Position: This looks at what is your worst inventory position projected between the close-of-business today all the way out to lead time. You can look at the projected on hand numbers StockIQ is using to calculate this by looking at the Order Schedule