Inventory policies

A record should be entered in this table if you wish to calculate a safety stock and a reorder quantity for a buffer. The calculation can be done for raw materials, intermediate materials and/or end items.

The inventory policies are computed based on the following:

  • First frepple starts off with a computed value.
    For safety stock this calculation is based on the requested service level.
    For reorder quantities this calculation is based on economic reorder quantity.
  • Next, we apply minimum constraints, which can be expressed in terms in units and/or days of demand.
    When both units and days of demand are applied, we use the lowest value.
  • Finally, we apply maximum constraints, which can be expressed in terms in units and/or days of demand.
    When both units and days of demand are applied, we use the biggest value.
    If the maximum constraints would conflict with the minimum constraints, we apply the maximum constraints.
  • In the above, it doesn’t make a difference whether the constraint is defined through a segment and business rule, or through a override at item-location level. Both are considered equal.

Field

Type

Description

item

non-empty string

The item name for which safety stock and reorder quantity should be computed.

location

non-empty string

The location name for which safety stock and reorder quantity should be computed.

roq minimum quantity

number

Imposes a minimum constraint for the reorder quantity.

roq maximum quantity

number

Imposes a maximum constraint for the reorder quantity.

roq minimum period of cover

number

Imposes a constraint on the minimum period of demand (expressed in days) to be covered with the reorder quantity.

roq maximum period of cover

number

Imposes a constraint on the maximum period of demand (expressed in days) to be covered with the reorder quantity.

safety stock minimum period of cover

number

Imposes a constraint on the minimum period of demand (expressed in days) to be covered with the safety stock.

safety stock maximum period of cover

number

Imposes a constraint on the maximum period of demand (expressed in days) to be covered with the safety stock.

safety stock minimum quantity

number

Imposes a minimum constraint for the safety stock.

safety stock maximum quantity

number

Imposes a maximum constraint for the safety stock.

service level

number

This is the desired service level percentage for that buffer, E.g : 97.5

lead time

duration
This is the replenishment lead time considered when calculation the safety stock.
When left blank, the system will automatically compute the decoupled lead time using the duration of the operations in the supply path.

lead time deviation

number

The lead time standard deviation considered when calculating the safety stock, can be left empty.

demand deviation

number

The demand standard deviation considered when calculating the safety stock, can be left empty.

do not stock

boolean
Indicates whether this buffer should be stocked. When set to true, a replenishment will only created when there is a demand.
Possible values are:
“TRUE”: Default reorder quantity of 1 and safety stock of 0 will be used.
“FALSE”: Reorder quantity and safety stock will be calculated.

push mode

boolean
Indicates whether excess inventory should be pushed downstream to other locations in the network.
Possible values are:
“TRUE”: Push excess inventory downstream.
“FALSE”: Keep excess inventory at this item-location.

segment_*

number

This values in these columns are not editible by the user. They represent the parameter values computed by the system based on the business rules.

When both a user-specified and computed value are provided for a parameter, the user-specified value overrides the segment value.