Inventory Analysis

Inventory Analysis




Inventory Analysis
Inventory is key to the supply chain. With many products and locations, it can be tricky to analyze where inventory is sitting and how old the inventory is.

Once the inventory targets are published, it's important to review how your inventory position compares to the targets. The inventory analysis module provides visibility and can help to answer questions such as:
  1. Are you holding a lot of inventory for make-to-order items?
  2. At what locations are you at risk for stocking out?
  3. Is their inventory at the wrong warehouse?
  4. Etc.


Layout

The module is split into two sections:

Cards

The top of the layout has three cards showing the number of SK that should be reviewed by a planner:

  1. Inventory below minimum: or SK use with on hand inventory that is below the minimum target.
    1. Average Daily Demand Demand = Total Sales History in Last 12 months / Number of days in 12 months
    2. Day of Supply = Current on hand Inventory / Average Daily Demand
    3. Minimum Days of Supply = Target stock Minimum / Average Daily Demand
    4. Shortage of Inventory = (Minimum Days of Supply - Days of Supply) * Average Daily Demand
  1. Inventory above maximum: or SK use with inventory position above the max target.
    1. Average Daily Demand = Total Sales History in Last 12 months / Number of days in 12 months
    2. Day of Supply = Current on hand Inventory / Average Daily Demand
    3. Maximum Days of Supply = Target stock Maximum / Average Daily Demand
    4. Excess Inventory = (Days of Supply - Maximum Days of Supply) * Average Daily Demand
  1. Inventory imbalance: is where there might be too much inventory at one location and not enough at another location.



  1. Clicking the View Details link will bring up a table showing further detail. The below example shows the Inventory Below Minimum detail table. 




Detail Table 

  1. The lower grid is a flat table defined by the Stock Item and Location that provides a lot of rich information to a planner.




The Planned Demand column will only show the Total column when collapsed. You can expand the column to expose the Orders, Net Forecast, Consumption, and Transfers Out data, to get more information about the Planned Demand. 





  1. The Planned Supply column will also only show the Total column until you expand the column to expose the Procurement, Production, and Transfer In columns. 





Filter Section

  1. Filter the Detail Table with the Filter section dropdowns. You can filter by Attribute, Date, and Currency by using the dropdowns.




Supply History Analysis





Supply History Analysis is a feature used for the planning and retaining of buffer stock by calculating the variability associated with manufacturing or procurement. Supply History utilizes Safety Stock to achieve these calculations. 

There are two types of variability:
  1. Variability in the quantity delivered.
  2. Variability in the time when it is delivered.
The basic inputs collected by Supply History Analysis are:
  1. Item
  2. Location
  3. Resource
  4. Planned Delivery Date
  5. Actual Delivery Date
  6. Planned Delivery Quantity
  7. Actual Delivery Quantity

The supply history data is read into the chart which shows the Actual and Planned Dates and Quantity. 




Going to Inventory Policy in Settings, a check box has been added to consider demand variability or production / purchase history variability. 

If Demand Variability is selected, the Inventory Policy grid will show the Safety Stock as is without MTOs. 

If the production / purchase history variability is selected, the Safety Stock will be calculated by adding together MTO and MTS.







Analyze

Click the Analyze button to use Arkieva AI Analysis to summarize the Supply History information. 







Refresh Supply History Charts

To refresh the chart data after selecting filters, click the Refresh Charts button located to the right of the Filter options. 




    • Related Articles

    • Inventory Policy

      Purpose of Inventory Policy Inventory policy is about setting safety stock and replenishment levels based on the organization's risk tolerance for stocking out. The system uses the lead time and demand variance to calculate optimal levels of stock. ...

    • Arkieva Product Tour

      Introduction Demand Review 1. IBP Demand Review 2. Demand Data Studio 3. Demand Product Lifecycle 4. Demand Segmentation 5. Demand Statistical Forecasting 6. Demand Collaboration 7. IBP End of Demand Review Supply Review 1. IBP Supply Review 2. ...

    • Manage Team

      Invite team members to join your account, customize permissions, and remove users from your plan. Invite a member to Arkieva 1. To invite a new user to Arkieva, click the Add New Member button. 2. The Invite New Team Member drawer will slide out. ...

    • User Access List

      Field Owner Admin User Comments Home ✔ ✔ ✔ Workflows ✔ ✔ ✔ Actions ✔ ✔ X Alerts ✔ ✔ ✔ Sales Predictor ✔ ✔ ✔ Comments ✔ ✔ ✔ Notifications ✔ ✔ ! Hidden by default, can be visible for use Help ✔ ✔ ✔ Quick Guide ✔ ✔ ! Hidden by default, can be visible ...

    • Sales Predictor

      Arkieva analyzes your sales history to predict when you could expect future customer orders. And we highlight customers that haven't ordered based on their usual ordering pattern. You can use Sales Predictor to: See when a customer is most likely to ...