Open source
supply chain planning

Correctly dimension
your inventory levels

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Correctly dimensioning the inventory across the network is important in today’s complex supply chains. FrePPLe computes safety stocks and reorder quantities for raw materials, intermediate products and end products.

This helps companies to:

  • Reduce the inventory costs
  • Prevent stockout situations
  • Improve customer service levels
  • Eliminate manual processes
inventory planning

Safety stock calculation

Safety stock accounts for supply and demand variability

The safety stock is the lowest level of the point in the inventory saw-tooth profile. It is required to account for the uncertainty during the lead time:

  • Uncertainty about the customer demand
  • Variable supplier performance

For every buffer, the safety stock level can be defined in one of the following ways:

  • Customer service level: FrePPLe will select the most relevant mathematical distribution to calculate a safety stock meeting the service level you want to achieve
  • Fixed quantity: The safety stock is not calculated but set to a default value given by the planner
  • Periods of cover: The safety stock will be set to the forecasted demand for a given time window
inventory profile sawtooth graph

inventory planning screenshot

Reorder quantity calculation

Optimize the reordering frequency

How often a replenishment should be ordered from a supplier is a recurrent question for a planner.
FrePPLe can model the batch ordering of parts at any location by calculating the reorder quantity using one of the following methods:

  • Economic order quantity: The reorder quantity will be calculated based on the Wilson formula
  • Fixed quantity: The reorder will not be calculated but will be set to a default value given by the planner
  • Period of cover: The reorder quantity will be set to the forecasted demand for a given time window

Leveraging your supply chain efficiency

Assisting the planner

The cockpit screen embeds many visual widgets driving the priorities of the planner’s daily workflow:

  • The frozen period stockout probability alert helps the planner anticipate potential risks
  • The inventory by location/item help you evaluate at a glance your aggregated stock levels
  • The demand alert immediately leads the planner to the early/late demand orders
  • delivery performance