Table of Contents
Material inventory planning for quality, quantity and time
The material inventory planning is the mental anticipation of the future material inventory. Their goal is to ensure the availability of the required materials in terms of type, quality, quantity and time. It should help avoid that
- insufficient stocks endanger the company's performance
- Excessive stocks reduce the profitability of the company
Planning of material inventory management
Material inventory planning can relate to:
- Material stock types
- Material inventory strategies
- Material replenishment
Material inventory planning can help to reduce the capital tie-up or to free up available material for other uses. In practice, taking into account the safety stocks, the material stocks are often between 20 % and 30 % above the average requirement values, which should be avoided.
Excessive stocks of individual materials and insufficient stocks of other materials can often be traced back to incorrect decisions made by material planning. With the help of EDP programs, it is possible to identify discrepancies between material requirements and material stocks. To do this, the historical values for consumption, stock and order quantity must be known in order to determine the demand figures. The preparation of the decision about the order to be triggered is no longer up to the dispatcher.