Stock Planning - An Overview

Stock planning business component, facilitates ‘on demand’ planning by maintaining a repository of all expected receipts and demand and linking each demand to a receipt.  

Note: The daemon processes related to stock planning must be configured in Daemon Executor. The system will process the demands and receipts, only when the daemon processes are scheduled and executed in Daemon Executor.

Most organizations today face dynamically changing priorities and high maintenance workloads in their operations. Hence these organizations would like to have a balance between availability of material at the required time as well as have a hold on Inventory carrying cost. In order to effectively plan and schedule maintenance activities, it is important to organize required material at the required time.

To have a balance between availability of material at the required time as well as have a hold on Inventory carrying, the inventory planning can be proceeded by using the processes like Min-Max / Reorder Level/ Disposition. The need based planning is known as “Disposition”. While the reorder and min-max models are based on past material consumption, disposition is based on future demands and receipts.

Stock Planning business component facilitates the delivery of stocks to sources of demand. Demand for an item comes from any upcoming maintenance event, which requires that item, and the supply comes from purchasing. For each demand, disposition tries to find a receipt and link the demand to the receipt. A “Receipt” is recorded when parts are purchased and updated in the inventory. Receipts occur due to transactions such as Purchase Request, Purchase Order, Release Slip etc

When there is a need for a part for any maintenance activity, the user will try to reserve the said parts for that expected activity. When a “Demand” is created within a warehouse, the repository is checked for availability of free stock. If free stock is available, then a reservation is done in advance for upcoming maintenance activities. Parts will be reserved provided the demand is within the reservation horizon set for the particular Part. If a demand comes beyond the reservation horizon, it will be kept as “Inactive demand” with no receipts linked to it. After some time when it comes within the reservation horizon period, it becomes active and a receipt will be mapped to it.

Note: The batch process configured in the Daemon Executor checks for all the inactive demands and tries to reserve them if they fall within in the reservation horizon.

Getting familiar with the activities