LeanStock Inventory is an additional option within the LeanStock Forecasting product. It provides the company with an MRP style planning tool based on the Forecast output from LeanStock.
The Inventory Profile output calculates the Stock on Hand over time based on the forecast demand and the Safety Stock level required depending on the classification of product as Normal, Lumpy, Erratic, etc. It does this for all products and outputs them against the Line number from the Input Data sheet and the Item name.
The concept is to review the requirements at each review period, ordering sufficient stock (rounded to the next MOQ) to both prevent the consumption of the existing stock before the cover period expires i.e. the Lead Time plus the time to the next Review Date.
This approach is somewhat different to the standard MRP min/max stock option, required order quantities are calculated at periodic review dates using a variable Safety Stock over time that adjusts for seasonality or trend. The order quantity is determined to bring the Stock up to the Order Level which is the maximum desired Inventory that should be held for a part number considering the Service Level set in forecasting.
Existing Purchase Orders can be input and used to offset the Required Order Quantity calculations (ROQ).
A detailed item based Stock Profile can also be shown to review the time based calculated requirements.
In the example above, despite existing purchase orders keeping the stock above the desired Order Level, the Inventory plan sets future Order Quantites to bring the Stock On Hand over time below this level while protecting the Safety Stock.