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This document is to help with the interpretation, of the Inventory Definitions used in the Material and Parts Windows within the ITMS system.  

 

The planned maximum allowable inventory for an item based on the planned lot size and safety level.

 

A quantity of stock planned to be in inventory to protect against fluctuations in demand or supply.

 

A set inventory stock level, where if the total stock on hand plus on order falls to or below that point, action is taken to replace the stock. The re-order point is normally calculated as forecasted usage during the replenishment lead time plus safety stock level.

 

An order quantity modifier, applied after the stock numbers have been calculated, that adjusts the order quantity to a pre-established minimum.

 

 

 

 

 

 

 

 

Last Revised: 28/10/2011 SJ