Chapter 5
Item Card
The figure below shows how historical data and future estimates are presented graphically. This is called the Item Card. Historical data are to the left on the graph and future estimates are on the right.
By checking Show Legend to the right of the graph, a list with short explanations will appear. By clicking the names on that list it is possible to hide/show different things on the chart. When pointing on the lines and bars on the graph information about units and dates appear.
The Original Sale appears as a burgundy diamond. This point cannot be adjusted within the graph and lets the user know if some adjustments have been made to the Sale Adjusted bars.
The Adjusted Sale is represented by orange bars, with the number of sold units on the vertical axis and the dates on the horizontal axis. These bars are adjustable and can be moved to show a higher or lower sale amount.
The Sale Forecast for the next periods is represented by yellow coloured bars on the right of the graph. The best-fit forecasting engine automatically chooses among five classes of forecasting models to satisfy most business forecasting requirements. The most relevant forecasting method is chosen for the product, depending on the nature of the product sales history and the amount of historical data available.
The historical inventory levels (Stock) are represented by a blue shaded area on the left side of the graph. The stock history in units is shown on the vertical axis and the horizontal axis shows the dates for each value.
The Estimated Stock is represented through the light blue shaded area on the right of the graph. This area shows for how long current stock is estimated to last and when possible stock out can occur.
The Safety Stock for the future orders appears as a blue dotted line in the sale forecast. The safety stock is based on the service level, variation in sale and how well fitted the chosen model is. The difference between the sale forecast and the forecast uncertainty is the calculated safety stock. This difference is also determined by how predictable the product is in sale. The system will calculate low safety stock levels for predictable products and high safety stock levels for unpredictable products with large variations in sale, if those variations cannot be described by seasonal effects or special events.
The Minimum Stock Level is represented by a purple line in the graph and shows the minimum amount of stock level that must be available in the warehouse or store (instead of 0).
Once you have submitted an order for a particular product, you can view that product graphically in the Orders tab. The Selected Order is represented on the graph by a magenta bar and appears on the date that it is supposed to be delivered.
Undelivered are orders that have been sent to NAV and are not delivered yet from the supplier.
If you do not purchase any more of this item, this is the estimated date that you will experience a stock out.
This is the purchase plan that is calculated from the night before. This needs to be turned on by your consultant in order to see this in the item card.
Minimum stock is different than Safety Stock. Minimum stock is the minimum stock level that the system will allow. In effect, by setting a minimum stock level you are defining a new 0 for that product. This is often used in retail to determine the minimum number of items for a shelf facing. Safety stock, in contrast, is a function derived from the forecast and is dynamic, while minimum stock number is static.