First, the difference between safety stock, minimum stock and maximum stock:
1. Safety stock: the quantity of goods in stock to prevent unpredictable fluctuations in demand or supply;
2. Minimum inventory: the minimum inventory quantity that should be kept in the warehouse, below which shortages may occur and affect normal production. When filling in the receipt/issue document, if the current balance of an inventory is lower than the minimum inventory, the system will give a warning;
3. Safety stock is a factor that will be considered when calculating the purchase demand, and an alarm will be given after setting the minimum stock.
4. Safety stock is not equal to minimum stock. In order to ensure that the inventory is within a safe range and does not generate excessive backlog costs, the minimum inventory, safety inventory and maximum inventory can be set.
5. Minimum inventory can be understood as an inventory set for certain factors and uncertain factors, safety inventory can be understood as an inventory set only for uncertain factors, and maximum inventory can be understood as an inventory point set for backlog costs.
Second, the specific calculation formula:
1, calculation formula of safety stock
Suppose the daily consumption is 100PCS, and the safety stock is equal to: L/T production cycle (days) * 100+ transportation time (days) * 100+ inspection time (days) * 100+ minimum stock, taking into account the unqualified rework days and products.
2. Calculation formula of minimum inventory
Minimum inventory (finished product) = minimum daily output × longest delivery days+safety factor/day.
Minimum inventory = safety inventory+purchase lead time consumption.
Minimum inventory = daily sales * arrival days+safety factor/day
Maximum inventory (finished product) = maximum daily output × shortest delivery days+safety factor/day.
Maximum inventory = average daily sales × maximum inventory days
Extended data list type
1. Inventory is an expensive investment, and both production enterprises and logistics enterprises need to correctly understand and establish an effective inventory management scheme. Due to different reasons, inventory can be divided into the following six categories: fixed inventory, in-transit inventory, safety inventory (or buffer inventory), investment inventory, seasonal inventory and idle inventory;
2. Regular inventory-inventory generated during replenishment. Regular inventory is used to meet the demand under certain conditions, and its premise is that enterprises can correctly predict the demand and replenishment time. Inventory of goods transported from one place to another in transit. Before reaching the destination, the inventory in transit can be regarded as a part of the regular inventory;
3. Idle inventory-refers to the inventory that has no demand in a certain period of time.
Baidu encyclopedia-minimum inventory
Baidu Encyclopedia-Safety List