Inventory Plan

Key Concepts

Proper inventory management is essential to ensure that demands are met while minimizing the costs incurred by carrying excess inventory. In PlanetTogether, the Inventory Plan displays detailed inventory-level information for every item and provides users with a visual representation of supply and demands. The inventory plan will allow planners to ensure sufficient materials to supply incoming demands and enough time to purchase or manufacture additional materials. 

The inventory plan can be accessed from the Views drop-down menu. 

Note: The tabs and sections within the inventory plan can be moved and docked to create a customized layout that allows easy access to frequently used controls. The tabs are moved the same way as windows but remain in the inventory plan pane. 

Inventory Grid

The inventory grid contains information about all inventory items, such as where those items are stored, any on-hand quantities, and total supplies and demands for that item. Each row represents a different inventory item. In addition, the inventory grid is searchable, which allows users to quickly find items by typing the item's name in the search box found at the upper-left corner of the grid. 

Additional options are found under the green Options button that allows users to filter the inventory list when activity blocks are selected on the Gantt. For example, when clicking on a block in the Gantt, the inventory list is filtered based on the materials required and the products produced by the operation selected.

Alerts can also be created from the inventory grid to notify planners when inventory stock is getting low. 

On-Hand Plot

The On-Hand Plot shows a graphical representation of the changes in inventory levels for particular items. The On-Hand quantity represents the amount of a particular item that is readily available in inventory. 

At the bottom of the On-Hand Plot, two grids display additional information about the inventory adjustments made.

  • Plotted values: This grid displays every adjustment that occurred and specifies the date, quantity, and reason for the adjustment. 
  • Inventory Details: This grid displays additional information about each adjustment, including the product, sales order, customer, job, etc. 

Tip: You can zoom in and out of the on-hand plot by using the mouse scroll wheel. Additionally, hovering the mouse over each "step" of the plot will display the current inventory levels for that item. 

Adjustments Tab

The adjustments grid displays demand, supply, and ending (net) inventory for an item during a specified time span.

  • Period: This will determine the time span for each column shown in the adjustments tab. If the period is set to 1 week, each column represents the inventory adjustments for a particular item occurring each week.
  • Horizon: Defines whether the information included in the inventory adjustments grid is contained only in the short-term span or for the entire planning horizon.
  • Inventory Warnings: The Net Inventory row is color-coded to show enough inventory to supply future demand.
    • Shortage: Represents an item in inventory that is beneath the safety stock level, is outside of its lead time and has a demand for that item. These items are highlighted in red.
    • Below Safety Stock: Represents an item below the safety stock but has sufficient inventory to handle incoming demands. These items are highlighted in yellow.
    • OK: Represents an item above the safety stock and has enough inventory to handle incoming demands. These items are highlighted in green.
    • Above Max Inventory: Represents an item that is overstocked in inventory and is incurring unnecessary carrying costs. The max inventory field triggers this warning flag, and these items are highlighted in orange. 

Item Details

The information found in the Item Details tab is typically imported, but this tab allows users to make any necessary changes should the information be updated. In PlanetTogether, Items represent the different raw materials, intermediates, sub-assemblies, and finished goods produced, stocked, and consumed by the manufacturer. 

  • Cost: The cost per unit purchased.
  • Item Group: This is used to visually group items into categories.
  • Source: Where the item originates from.
    • Purchased: The item is purchased from a vendor.
    • Manufactured: The item is produced on-site.
    • Purchased Or Manufactured: The item can either be purchased or produced on-site. 
  • Item Type: The type of item that is produced, stocked, or consumed. The available item types are Finished Good, Intermediate, Raw Material, Resource, and Sub Assembly.
  • Default Lead Time: This is how long it usually takes to receive an order. This allows the system to schedule jobs even when there is no exact availability date for the material. 
  • Batch Size: Jobs and Purchase Orders must be in integer multiples of this value to meet demand.
  • Batch Window: When batching demand to create Jobs or Purchase Orders, the batch should not reach out further than this value to reach the Max Order Qty.
  • Job Auto Split Qty: The quantity to be split off from the job. Jobs are auto-split if the item's JobAutoSplitQty is greater than the job's first manufacturing order's Required Quantity.
  • Min Order Qty: The minimum number of items that a single Job may produce or may be ordered in a single Purchase Order.
  • Max Order Qty: The maximum number of items that a single Job may produce or may be ordered in a single Purchase Order.
  • Order Qty Roundup Limit: Enforced by MRP-generated Jobs and Purchase Orders only. This is the maximum number of items that MRP will allow for a Job or a Purchase Order to be rounded up from the demand quantity in order to reach the Min Order Qty.
    • For MRP-generated Jobs, if the demand quantity plus Order Qty Roundup Limit value does not equal at least Min Order Qty, then the Job(s) are generated with the Do Not Schedule setting enabled to prevent the job from being scheduled, and the Job quantity will reflect the original demand quantity.
    • For MRP-generated Purchase Orders, if the demand quantity plus Order Qty Roundup Limit value does not equal at least Min Order Qty, then the Purchase Order(s) quantity will reflect the original demand quantity plus the Order Qty Roundup Limit value and the Less Than Min Order Qty setting will be enabled for the order.
  • Plan Inventory: This indicates whether the item should be included in the inventory plan. 
  • Transfer Qty: As this item is being produced, it is transferred to Inventory in quantities of this size.
  • Shelf Life: This defines the length of time an item can be used as a job material after it is produced. You must first set the item's Lot Usability to "Shelf Life" and specify a time span in this field to use this feature. Then, the Shelf Life takes effect based on the product's Inventory Available Timing field.
    • This field is handy in the food and beverage, chemical, and pharmaceutical industries, where materials or products cannot be used or sold after a specified amount of time. 

Tip: The following fields are required to have a value greater than zero in order for MRP order quantity batching to be enabled:

  • Batch Size
  • Batch Window
  • Min Order Qty
  • Max Order Qty

 

Warehouses and Inventories

Similar to the Item Details tab, the Warehouses and Inventory tab information is typically imported. However, this tab allows users to define and modify the warehouse where the inventory items are stored. In PlanetTogether, a warehouse represents the storage facilities for both raw and finished goods and can be used for both supply and demand information. Note: A destination warehouse must be set for product information to be configured properly on the operation headers. Additionally, warehouses and items are linked when coming into PlanetTogether so that any item will have a designated warehouse where it is stored. 

  • On Hand Qty: The amount of physical inventory for this item in this warehouse.
  • Max Inventory: Specifies the maximum quantity of items that can be stored in inventory.
  • Lead Time: The time it takes between when the item is ordered and delivered for this Warehouse.
  • Forecast Consumption: This is used as part of MRP and specifies how MRP should consume forecasts before executing the MRP logic. Visit this page for more information on Forecasts.
  • Forecast Consumption Days: The number of days within the forecast consumption window.
  • Mrp Processing: This specified whether MRP should generate Purchase Orders of Jobs to supply the item.
  • Mrp Excess Quantity Allocation: Controls which parent jobs are adjusted to accept the increased allocation when MRP-generated jobs produce excess. The following options are available:
    • None: Leave extra material as WIP in the warehouse or on the tank. This is the default.
    • Last Parent Job: Allocate the remainder to the last consuming job (by Need Date).
    • All Parent Jobs Equally: Divide the excess quantity equally among the parent jobs.
    • All Parent Jobs Proportionally: Divide the excess quantity proportionally to the parent job quantities.
  • Low-Level Code: The Low-Level Code is calculated during the MRP process when jobs are generated.
  • Safety Stock: This is the amount of an item that represents a "Safe" buffer. Falling below the safety stock will trigger a warning on the Inventory Plan to inform the material planner and/or scheduler that additional material is required. This quantity serves as a buffer for planners and schedulers to avoid material shortage bottlenecks. 

Forecasts

The Forecasts tab displays demand forecasts for selected inventory items. This tab can generate new forecasts, adjust existing ones, and remove them from the inventory plan. Additional information on forecasting can be found here

 

Watch Visualizing Demand using the Inventory Plan.