Report: Overstock Identification¶
Executive summary¶
Overstock is an undesirable state of warehouse logistics, in which an unnecessarily high stock of a certain item is kept. Overstock causes inefficient fixation of capital, takes up storage space for more efficiently usable goods or materials, and potentially increases storage costs with the necessary administration.
The overstock identification module detects unnecessarily high stocks based on defined rules and provides information on for which goods or materials it would be appropriate to reduce stock or, if possible, distribute to other warehouses or branches.
Overstock is expressed as a number of pieces of a given item above the calculated or fixed level of maximum stock (see Module: Signal and maximum stock). Based on this, the stock identification report suggests an effectively usable overstock, which is rounded to whole units of measure (depending on the unit of measure setting for the item, eg packaging) and the potential for reverse distribution of goods expressed in monetary units.
Functional description¶
Dependence on the selected path (tree hierarchy)¶
The displayed report items correspond to (depend on) the selected tree structure on the left or in the path at the top.
Displayed data¶
The report consists of a table with the following columns (these are basic versions of STOCK without “customizations”, ie for some customers their own, so-called “preprocess” columns can be changed or added):
- Code
- Product
- Warehouse
- Stock on hand (MU, CZK)
- Standard suggested orders [MU]
- Annual sales [MU]
- The sum of annual sales for the past closed 12 months.
- Overstock [MU]
- The quantity that is suggested to be returned, regardless of the number of pieces in the package.
- Overstock value [CZK]
- The value (in stock prices) of the quantity of stock that is suggested to be returned, regardless of the number of pieces in the package.
- Usable overstock [MJ]
- The quantity that is suggested to be returned, rounded down to the number of pieces in the package.
- In case that ABC segment = D, the package size is not taken into account.
- Value of usable overstock [CZK]
- Value (in stock prices) of the quantity of stock that is proposed to be returned, rounded down to the number of pieces in the package.
- In case that ABC segment = D, the package size is not taken into account.
- Last purchase
- Date of last purchase of stock.
- ABC
- Product segment within ABC analysis.
- New product
- Information whether the item (product in stock) is a novelty.
- Required field
- Information whether the item (product in stock) is mandatory.
- Suggested specifically (yes / no)
- Related to the activated redistribution function.
- Yes = Suggestion for redistribution based on modified (own) rules.
- No = Reverse redistribution suggestion based on standard rules.
Information on the meaning of individual columns can be found in “tooltips” in column headers.
Report-related administration¶
Setting how to identify the stock¶
The settings in this administration affect the evaluation of overstock in the Overstock Identification Report. Changes in this setting will always be reflected in the report after STOCK recomputation. The settings are global (cannot be set separately for category, warehouse, etc.). The intersection of all criteria at the same time is always valid.
Values are set for the following parameters:
- Only if the overstock value is greater than
- The value is in CZK.
- An overstock will only be identified if the sales value (quantity * price) is greater than the number entered. This way, items with unnecessarily low sales will not be moved.
- Holding period of stock for non-sporadic products in days
- This setting only applies to non-sporadic products.
- The number of days the inventory should last. Overstock will be identified only if available stocks - orders - min. the stock will be larger than the stock in this number of days.
- Minimum multiple of the number of pieces sold
- Designed for non-sporadic products.
- Oversupply will be identified only when the given multiple of the period [days] selected in the previous setting is exceeded. This avoids identification of overstock in low quantities of product.
- This setting only applies to non-sporadic items.
- This setting is used mainly in situations where the data from reporting are subsequently used for redistribution of overstock to another branch, where the goods are needed. It serves to reduce logistics costs of transporting goods that will need to be replenished in a short time. In order not to transport “single pieces”.
- Multiple of min. stock for sporadic products
- Multiple of minimum stock. An oversupply will only be identified if the inventory is greater than the result of that multiple.
- The identified overstock is equal to the difference between the available stock and the multiple of the minimum stock.
- Number of days of first storage
- Number of days from the first storage of the product. Overstock will only be identified if the time in days from the first storage is longer than the time selected below.