Understanding inventory projections

What is On Hand and Safety stock? – Displays the on-hand inventory value from the latest snapshot for both past dates and current date. This information is extracted from the inv_level data entity. When there are multiple records with different on-hand values for the same snapshot date, Insights will select the latest snapshot record for processing. The safety stock is the range specified in the inventory policy.

How is demand calculated? – Insights gathers data from the forecast, outbound sales orders, and the transfers orders (that is, products moving out of site for a given time frame) to calculate the total demand. When demand is available at a higher granularity, such as, weekly, monthly, and so on, Insights will spread the forecasted value across the given time frame.

Prior – When you slide the Prior button, you can view the inventory values for the last seven days, including any day in the past.

How is Projected inventory different from On Hand? – On hand inventory is the current stock in your ERP system and projected inventory is the future inventory level prediction based on factors such as previous day’s ending on hand/projected level, inbound supply (inbound order line, inbound shipment, inbound order line schedules), outbound sales (outbound order line, outbound shipment, and the demand forecast. Using projected inventory, you can plan the future inventory required to avoid stockouts or overpricing.

How is On Hand different from Projected On Hand? – Insights calculates projected on hand when there are no records available for the current date using the same logic used to calculate the projected inventory for future dates.

How is quantity unit of measure (UOM) calculated and are there any defaults used? – The unit for inventory quantity measures, such as on hand, on order, in transit, and projected inventory are displayed to distinguish between eaches, pallets, and cases. To prevent UOM mismatches and streamline calculations, Insights defaults to using the product’s base UOM specified in the product data entity for conversions. The unit conversions are derived from product_uom and uom_conversion. For more information on the data entities, see Insights.

You can also set the default UOM by adjusting the default configuration. For more information on how to change the default configuration, see Get support for AWS Supply Chain.

Are inventory projections and risks generated for products that are not in stock? – Adjust the inventory policy safety stock range to zero for products that are not in stock. This adjustment will prompt Insights to categorize such product-site combinations as products not in stock. Similarly, you will be alerted to excess stock risks when stock is held at a location. Insights also offers recommendations to move excess stock out and receive stock when there is a stock out.

How does Insights handle unallocated demand? – When outbound_shipment information is unavailable, Insights will allocate demand from outbound_order_line to either the promised delivery date or the requested delivery date. When outbound_shipment information is available, Insights will distribute the total demand quantity across ship dates. Any unallocated demand in a day and up to six months are carry forwarded. When there is a cancellation, Insights will stop carrying forward the demand.