Excess Stock Review

Requirements Planning > Requirements Planning > Excess Stock Review

Excess Stock Review

You use this program to calculate excesses and shortages of stock by warehouse based on the min/max levels calculated in Inventory Optimization (IO Stock Levels Modeling and IO Batch Levels Calculation) and incoming and outgoing sales orders.

The program also enables you to create suggested Supply Chain Transfers (SCTs) to move stock quantities from one warehouse to another.

Excess stock identification and management is an essential component of optimizing inventory. Excess stock can appear in various forms:

Slow-moving stock – this is stock where the level of investment represents many months of usage at historic or forecasted demand levels
Non-moving (dead) stock – this is stock which has had no demand within the last n days and for which there is no expected demand within the forecast horizon.

You may hold strategic stock (such as spares for equipment sold) for which there may be no historic demand and the onset of future demand is unknown, but some of these items need to be held in stock to provide service in the event of demand occurring.

If such strategic items exist they should be clearly identified in the stock classification process so they can be excluded from the Excess Stock Review. In such cases these items could have a fixed quantity policy which would make them visible in determining excess.
Stock more than required within the planned order cycle. This is more difficult to recognize and manage, but if done correctly can realise significant improvements in return on investment.

You typically run this program immediately after running the Requirements Calculation program and then again, with various exclusions, after each phase of processing is completed in the calculation cycle ( i.e. once the various supply mechanisms (jobs, purchase orders, supply chain transfers) have been reviewed and the recommended changes applied.

Toolbar and menu

When you load the Excess Stock Review program, the IO Selections program is displayed, enabling you to indicate the stock items for which you want to identify excess stock.

When you select the Start Processing option from the IO Selections program, the results are displayed on the MRP Excess Stock Review screen.

Based on the selections made, the program processes the supply and demand from the MRP pegging file (MRPDET) and groups this according to the periods created by the forecast calendar (using IOPPRD). If any stock code has excesses or shortages in any of its locations in any period, then it is included in the review.

The Run date used is the date on which the Requirements Calculation was run.

Field	Description
View	This enables you to indicate the Selections information you want to display in the Summary and Details panes. One of the following can be selected: Cost values Sales values Quantities You need to select Quantities if you want to be able to create SCTs - see Period Breakdown. The Quantity option is not available at group level as each stock keeping unit making up this total quantity may hold the quantity in a different unit of measure. Therefore the Quantity option is not available when you highlight a group entry, such as Buyers or Selection totals, in the Selections treeview.
Parameters	Select this to load the IO Selections program to indicate the selection set or stock code/warehouse selections for which you want to run the excess stock review.
Calculation Options	Select this to indicate additional criteria according to which you want to calculate excess stock (see Calculation Options).

Calculation Options

This screen is displayed when you select the Calculation options function.

Field

Description

Select this to accept your selections and to return to the review screen.

Cancel

Select this to ignore any changes you made and to return to the review screen.

Calculation Options

Base of measure

This is the basis on which to calculate the excess or shortage in stock in any given period.

Field

Description

Quantity

When you select this, the calculations are performed as follows:

Excess is determined by the closing stock quantity being greater than the maximum level.
Shortage is determined by the closing stock quantity being less than the minimum level.

Days cover

When you select this, the calculations are performed as follows:

Min days = Minimum / (Demand in period / no of days in period)
Max days = Maximum / (Demand in period / no of days in period)
Excess - Current stock holding - Maximum
Excess days = Excess / (Demand in period / no of days in period)
Distributable excess days = Total excess days – no of days in period.
Effective stock = On order + stock on hand – ((Demand in period / no of days in period) * lead time))
Shortage days = (Minimum – Effective stock) / (Demand in period / no of days in period)

Although this is more complex, it gives a finer measure of excess in that calculations are based on a single entity as opposed to min/max levels.

Period days to use

Field	Description
Total	Select this to use all calendar days when doing the calculation.
Working	Select this to use only the working days in the calendar when doing the calculation.

Min/max levels to use

The minimum and maximum levels to use can be based on the MRP snapshot levels table, the live IO levels table or the IO draft levels table.

Include in demand

This enables you to indicate the sources of demand you want to include in the calculation of excess stock.

This includes existing and suggested demand for the items selected, based on the demand entities found on the MRP pegging table.

You can exclude suggestions if you decide not to raise live entities.

The default is for all demand to be included.

Include in supply

This enables you to indicate the sources of supply you want to include in the calculation of excess stock.

This includes existing and suggested supply for the items selected, based on the supply entities found on the MRP pegging table.

You can exclude suggestions if you decide not to raise live entities.

The default is for all supply to be included.

Selections

This treeview enables you to select the categories or levels of excess stock you want to review.

Your selection in the treeview determines what is displayed in the Summary and Details panes.

An entry of {Unclassified} indicates that the information is not saved in the Inventory Master file/table. For example all selected stock items that do not have the buyer defined against them are listed in the unclassified section for Buyers in the treeview.

Pareto analysis need to be run before any entries are listed in the Pareto classifications entry (see Pareto Analysis).

Selecting the All SKUs entry displays the excess stock information for all stock items in the selected selection set or all stock items you selected to include in the IO Selections program.

Summary

This displays the details for the entry currently selected in the Selections treeview.

The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.

The summary level (group level) includes the following information:

Opening stock value

The stock on hand with which the calculations begin.
Total existing demand value
Total existing supply value
Total suggested demand value
Total suggested supply value
Number of periods with excess
Number of periods with shortage

Group Information

This pane is available when you select any parent item in the in the Selections treeview. For example when you click on Selection totals, Buyers, Suppliers, Warehouses, etc.

Details of the group of stock keeping units (SKU) or of the actual SKU currently highlighted in the Summary listview are displayed. These details can also be displayed in the Summary listview.

SKU Information

This pane is available when you select any item below a parent item in the Selections treeview. For example when you click on {Unclassified} under Buyers or Suppliers, on a specific warehouse under Warehouses, on a specific planner under Planners, etc.

Details of the stock keeping unit (SKU) currently highlighted in the Summary listview are displayed. These details can also be displayed in the Summary listview.

Details

This pane consists of three tab pages, namely Graph, Period Breakdown and Warehouse Comparison.

Graph

This displays a graphical representation of the excess stock information for the entry selected in the Selections treeview.

Period Breakdown

Field

Description

Create Suggested SCT

Select this to create suggested Supply Chain Transfers (SCTs) for the currently highlighted line to move stock quantities from one warehouse to another.

This function is only enabled when you are viewing individual stock items and you are viewing the Quantities.

You can transfer excess stock for a stock item from one warehouse to shortages in another warehouse in the form of a suggested supply chain transfer.

The option Use absolute days when applying lead time to transfer supplied items (Inventory Setup) is applied when creating a suggested SCT and calculating the transaction date and demand date of the transfer supplied item.

Suggested SCT Warehouses

This screen is displayed when you select the Create suggested SCT option.

Create

Select this to create a suggested Supply Chain Transfer.

Once you have created the suggested SCT, you use the Supply Chain Review program to create the actual SCT. You can maintain or cancel the suggested SCT from the Supply Chain Review program.

Cancel

Select this to ignore any changes you made and to return to the review screen.

Suggested SCT Warehouses

Stock code

This is the code of the item for which the suggested SCT will be created.

Rev

This is the revision for an ECC item.

Rel

This is the release for an ECC item.

Source Wh

This is the warehouse with the excess and from which the quantity must be transferred.


	This displays the warehouse currently highlighted in the Summary listview.

Target Wh

This is the warehouse with the shortage and to which the quantity must be transferred.

Quantity

Indicate the quantity you want to transfer to the target warehouse.

Period Breakdown Listview

This displays the values per period for the corresponding entry currently highlighted in the Summary listview.

The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.

Additional columns can be added to the listview by right clicking in any column heading and selecting the Field Chooser option (see Listviews).

The following information is included in this listview:

Column	Description
Minimum	The minimum is aggregated when viewing group level entities.
Maximum	The maximum is aggregated when viewing group level entities.

Warehouse Comparison

This displays the excess and shortage values per warehouse for the entry currently selected in the Period Breakdown listview. This only displays information when viewing individual stock items.

The values displayed are the quantities, sales values or cost, values depending on your selection in the View menu.

The warehouses selected in the review are displayed, with their excess/shortage for the period selected.

Additional columns can be added to the listview by right clicking in any column heading and selecting the Field Chooser option (see Listviews).

Notes and warnings

Program access

You cannot run this program when:
- the Inventory Optimization module is not installed
- the Requirements Calculation has not been run
- you selected the option: Consolidate selected warehouses (Requirements Planning Setup - Warehouses tab)

Application Help Pane

Application Help Panes provide step-by-step instructions for various functions within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program. The intention is that the pane provides information that is uncluttered and easy to navigate.

You can embed an Application Help Pane:

in the main SYSPRO menu
in any program with panes, if not using roles
when adding a role layout in Design Mode.

Inserting Application Help

You would typically follow this procedure to display help for the current program in a customized pane that can be pinned to the program window.

Information includes step-by-step instructions for the various functions available within the program, including a brief overview of what the program does, what setup options are required and how to personalize the program.

Open the program for which you want to insert application help into a customized pane.

This functionality is only available for a program that has panes.
Right-click any form field.

You can also click the triangle menu icon that appears in the title area of a pane.
Select Insert Application Help from the context-sensitive menu.

The application help appears in a pane within your program. You can reposition the pane using the docking stickers or pin it to the program window.

Removing the Application Help pane

If you no longer want to display application help in a pane for your current program, you can simply remove it.

Select the Close icon in the right-hand corner of the application help pane.
Confirm that you want to delete the pane.