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This page allows you to identify the availability of free stock on the required date. Tell me more
Select the “ Free Stock Information” link under the “Inventory Planning“ business component.
The “Free Stock Information” page appears.
Enter the following details:
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Stocking Point |
Use the drop-down list box to select the stocking point where the items are stored. The system retrieves all the warehouse organization units for login business unit. The system displays “First OU and Description” by default on launch of the page. |
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Press <Enter> key. | |
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The system sets the review level field with "Stocking point" by default on selection of the stocking point. |
The system displays the following:
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Stocking Point Desc. |
The description of the stocking point. |
Enter the following details:
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Review Level |
Use the drop-down list box to select the levels of review that is., the level for which you need the free stock details. You can select from "BU", "Stocking point" or "Warehouse". The system displays "Stocking point" by default on launch of the page. |
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Warehouse Code |
The code identifying the warehouse. |
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Press <Enter> key. | |
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The system checks for the validity of the warehouse. If it is valid then it should be a “Nettable” and should be in “Active” status. | |
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Help facility available. |
The system displays the following:
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Warehouse Desc. |
The description of the warehouse. |
Enter the following details:
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Item Code |
The code identifying the item for which you wish to inquire the free stock. |
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Press <Enter> key. | |
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The system checks the validity of the item. | |
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Help facility available. | |
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Variant Code |
The code identifying the variant of the item. |
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Press <Enter> key. | |
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The system checks for the existence of the variant of the item. If it exists, then it should be valid and should be in “Active” status. The system also ensures that the variant is dispositionable. For the specified variant, the system retrieves the corresponding item variant description and stock UOM. | |
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Help facility available. | |
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Required UOM |
The required unit of measure of the item. The system ensures that the unit of measure exists and is in “Active” status. |
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Help facility available. |
The system displays the following:
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Item Variant Desc. |
The description for the combination of item and variant. |
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Stock UOM |
The unit of measure of an item in inventory. If the item is not left blank then the system retrieves the UOM specific to the item. |
Enter the following details:
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Required Date |
The date on which the item is required. The required date should be greater than or equal to the current date. |
Click the “Get Free Stock” pushbutton to retrieve the free stock information in the multiline.
For each date either receipt or demand event date, the system adds all the free event quantity available on receipts till last receipt on or before the required date.
The system displays the following in the “Free Stock Information” group box:
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Total Free Stock Qty. |
The total quantity of the item available as free stock to cater to the immediate demand. The quantity represents the sum of all the free event quantity. |
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Total Free Plan Receipts Qty. |
The total quantity of expected supply of an item that is not booked. All the planned receipts are considered and the quantity of each is calculated and the summation of all is displayed. |
The system displays the following in the multiline:
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Warehouse Code |
The code identifying the warehouse. |
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Free Stock Qty. |
The free stock quantity of an item available at each warehouse to service demands. |
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Free Plan Receipts Qty. |
The total quantity of expected supply of an item that is not booked which will be available at the warehouse. |
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Warehouse Desc. |
The description of the warehouse. |
To proceed, carry out the following
Select the “View Free Stock Detailed Information” link at the bottom of the page to view the detailed information of the free stock.
Select the “View Plan Receipts Information” link at the bottom of the page to view the information of the planned receipts.
Free Stock Information – An overview
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The free stock refers to the minimum unreserved stock balance available for customer order promising. It is the sum of free physical stock and free event quantity, which represents the unreserved receipt quantity. When a requirement comes up for an item on a specified date, then the Availability To Promise (ATP) is run by the system to identify all the future demands and receipts. The stock availability can be checked against the ATP and can be reserved to meet the demands.
You can view the free stock availability details by selecting the stocking point (Organization Unit) where the item is valid and the warehouse .You can also specify the required unit of measure of the specified item. The free stock details can be exploded based on the date requested by the customer i.e. if the item is requested on “10/01/03” then all the free stocks available until the specified date are identified and populated onto the multiline. You can reserve the demands against the receipts only if free stock is available. Let us now consider the logic by which the free stock quantity on a specified date is calculated:
Let us consider three variables S1, S2 and S3 respectively.
S1 = Sum of the stock on hand + Sum of all firm receipts event date <= ATP date.
S2 = Sum of all the firm demands event date <= ATP date.
S3 = S1 – S2.
If S3 <= 0 then ATP = 0.
If S3 > 0 then assign Cumulative Forward Balance = S3 and consider all firm receipts and firm demands > ATP date till the last demand event.
If demand (Cum Forward Balance = Cum Forward Balance - demand quantity).
If receipt (Cum Forward Balance = Cum Forward Balance + receipt quantity).
If Cum Forward Balance < 0 then ATP = 0.
If Cum Forward Balance > 0 then ATP = S3.
From the above scenario, if S3 is less than or equal to zero (negative) then the ATP is set to zero i.e. the quantity is not available on the requested ATP date. If S3 is greater than zero (positive) then S3 value is assigned to another variable “Cum Forward Balance”, which considers all firm receipts and demands beyond the ATP date till the last demand event.
The demand quantities considered after the ATP date is deducted from the Cum Forward Balance and all the receipt quantities considered after the ATP date is added to the same variable. If the Cum Forward Balance derived after accounting all the demands and receipts is less than zero then the ATP is set to zero i.e. the requested quantity cannot be met on the specified ATP date. Otherwise, ATP is set to the quantity attached to the variable S3 i.e. the quantity on the requested ATP date can be met. The above logic is explained with an example that considers only firm receipts and demands as follows:
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Date |
Expected Receipts |
Expected Demands |
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01-August |
1000 |
0 |
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02-August |
0 |
0 |
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03-August |
0 |
300 |
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05-August |
300 |
0 |
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06-August |
0 |
500 |
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07-August |
0 |
0 |
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08-August |
0 |
300 |
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09-August |
400 |
0 |
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10-August |
0 |
300 |
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11-August |
200 |
0 |
Free stock values
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ATP Dates |
ATP Quantity |
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05-August |
1000 |
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09-August |
600 |
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04-August |
700 |
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13-August |
500 |
From the above table, if the required date is “04 August” on which the item is requested, then the system calculates the ATP quantity as follows:
The stock available, receipts and demands before “04-August” are considered. The details as on “03-August” are
S1 = 1000 + 0 (receipts)
S2 = 300
S3 = S1 – S2 = 1000 – 300 = 700
S3 is greater than zero (positive) and hence all the demands and receipts beyond the ATP date are considered. Now we can verify the stock balance in the future. So, assign S3 to as “Cum forward Balance”.
Cum Forward Balance = S3 = 700
Cum Forward Balance = Cum Forward Balance - Expected Demands
= 700 – (500 +300+300) = 700 – 1100 = - 400
Cum Forward Balance = Cum Forward Balance + Expected Receipt
= -400 + (300+400+200) = -400 + 900 = 500
The quantity derived after considering all the demands and receipts after the ATP date is “500”. This quantity is greater than zero (positive) and less than the available stock quantity derived before the ATP date. Therefore
ATP = S3 = 700.
The free stock quantity of “700” can be promised on the requested date “04 August” and the other demands can be adjusted accordingly. Likewise, you can derive the quantity to be promised on the other set of ATP dates. On initiating the free stock operation, the system retrieves the corresponding free stock information in the multiline. For each of the selected record in the multiline, you can make use of the links to view the detailed information of free stock and planned receipts.
