Introduction
Inventory Planning is an exercise in optimizing shifting factors much in the same way that Capacity Planning is. Where Capacity Planning is involved in balancing incoming and forecast demands on capacity, along with varying availability and up-time on machines and labor resources, Inventory Planning must balance competing requirements in order to maintain optimal inventory levels. For example, things like replenishment lead times, carrying cost, safety stock, and inventory forecasts must all be balanced, but none of the aforementioned are static values.
Key Concepts
Inventory Planning in APS revolves mostly around the Inventory Plan view and the Inventory Plot functionality. Similar to the way that material planning assuming infinite capacity is unrealistic, Inventory Planning in APS is inextricably tied to the finite capacity of the shop floor. Visibility in the types of data that is shown, both supply and demand, are useful not only from a material planning perspective, but ultimately contributes to providing visibility on the Gantt Chart so that material bottlenecks can be spotted days or even weeks before they occur, allowing planners and schedulers time to resolve the future issues.
Data To Show
- Demands: Categories indicating where items will be consumed
- Sales Orders: See Sales Orders
- Forecasts: Forecasts are the projected demands for the Item in question and is not reflective of an actual, firm demand.
- Job Materials: This a demand where items are being consumed as material requirements for a Job
- Transfers Out: See Transfer Orders