A stock point is a place at the beginning or end of a routing or group of routings where inventory is accumulated to match with either other components. Components refer to the components in an assembly process, demand (as in finished goods stock) or releases (as in raw materials stock). Note that we distinguish work-in-process (WIP), which is inventory in a product flow, from stock, which is inventory that resides in a stock point. Ending Stock Points are the unit of grouping for items analyzed using the Inventory Optimizer tool. Beginning and ending stock points are required to generate routings and are assigned to product flows.
To edit the parameters of a Stock Point:
- Open the Data Entry pane on the left side of the User Interface
- Select a stock point
- Open the Properties panel on the right hand of the User Interface
- Make desired changes to the input fields
Stock Point Data Element Description
| Data Element | Description | Constraints |
|---|---|---|
| Description | Name of the Stock Point | |
| Minimum ROP Value | The minimum reorder point (ROP) value that the Inventory Optimizer and the Cash Flow Optimizer can be set to during the optimizations. No Restriction: ROP and Safety Stock are allowed to be negative Zero: ROP values must be greater than or equal to zero and safety stocks are allowed to be negative Safety Stock GTE0: Safety Stock and ROP must be greater than or equal to zero | No Restriction, Zero, Safety Stock GTE0 |
| Current Fill Rate (%) | The current fill rate (probability of no stock out) of your production system as a percentage. | 0 – 100 |
| Minimum Fill Rate (%) | Minimum fill rate displayed for all items assigned to the Stock point. This value sets the lower boundary on the x-axis when generating Inventory Optimizer Tradeoff Plots. | 0 – 100 |
| Maximum Inventory Investment ($) | Maximum investment displayed for all items assigned to the stock point. This value sets the upper limit on the Y-axis for the Inventory Optimizer Tradeoff plots and Stock Benchmarking plots. | ≥ 0 |
| ReOrders Case 1, 2 and 3 | Number of orders per period for inventory items at the Stock point. These values are used to plot the efficient frontier curves on the Inventory Optimizer Tradeoff Plot. Case 3 is plotted last so, if all curves are on top of each other, Case 3 will be displayed. | > 0 |
| Annual Inventory Carrying Cost Ratio (%) | The annual cost of stock inventory, Finished Goods or Raw Materials, represented as a percentage of the inventory value. There is also a hold cost for WIP that is set in the Product Flow data entity. The use of separate holding costs provides flexibility in modeling cash flow optimization. | 0 – 100 |
| Target Fill Rate (%) | The target average fill rate for this stock point. This should be set to the overall target fill rate the user wants for demand-weighted fill rate for all items in the stock point. | 0 – 100 |