Module: Identifying overstock

Executive summary

Overstock is an unwanted status of warehouse logistics, when unnecessary high level of an item supply is held in a warehouse. The overstock creates ineffective capital fixation, hold space in a warehouse that could be used better and potentially increases warehousing costs with necessary care-taking costs. The “Overstock identification” module shows ineffectively high supply based on a set of rules and also gives an information about what goods or material should be lowered in supply, or - if possible - redistributed to other warehouses or stores. The overstock is shown as an amount of pieces over calculated or fixed maximal supply level (see Module: Signal and maximal supply). The overstock identification module then suggests effectively usable overstock, that is rounded into measurable units (based on the settings of measurable units - package, carton or other), and redistribution potential valued in currency.

Functional description

The report consists of a table with these columns:

  • Code and name of a product
  • Identification (yes/no), if the item
    • Is a goods with fixed level of min/max supply
    • Is a new product
    • Is a Sellout item
    • Is a stock item
    • Is a sporadic item
    • Is a consignated item
    • Is an item that is not managed by STOCK
  • Warehouse where the items is placed
  • The item supplier
  • Amount of pieces in a package
  • Yearly sales frequency - amount of sales, the sales value does not matter
  • Yearly sales in MU
  • Date of last item sale
  • ABC category in the warehouse and in the central warehouse
  • Total available supply
  • Orders received
  • Calculated overstock
  • Redistribution potential (in the currency set in STOCK)
  • Usable overstock (rounded by whole packages)

Extensions

Redistribution potential (in the currency set in STOCK)

This report calculates with specific settings and business rules for overstock identification. In such case, the report also shows a column with a specific information (yes/no), if the overstock was identified based on these adjusted rules or based on the default calculations.