The Compare Scenarios page in phase 3 allows you to compare one or more scenarios with each other and with your actual stock data. This will give you insight in how your actual stock is doing compared to the scenarios that you created. It also allows you to see the impact of your changes (like desired service level) on your inventory requirements.
Scenario Stock - Bar Chart¶
The bar chart displays Safety Stock and Cycle Stock for each selected scenario. The last bar in the bar chart represents the Actual Stock according to the dataset that you’ve loaded. A more detailed explanation on this data can be found below at the explanation of the Scenario Stock - Table.
The bar chart shows the aggregated data. Individual values per resource/location/product are summed, so you see the totals.
The header of the bar chart indicates whether you see the data in units or values. This can be changed on the View panel. It also shows whether the aggregation is done over all resources/locations/products or whether a filter is applied (which can be changed on the Product Filter and Resource Filter panels).
When you click on a bar, the corresponding scenario is selected and loaded, such that you can easily see all details of the scenario at Scenario Results.
Scenario Stock - Table¶
The table displays the result data, on a detailed level (per resource/location/product). The first columns display the data for each selected scenario. The last two columns display the Actual Stock according to the dataset that you’ve loaded and the Unit of Measurement (UOM) for that line in the table.
The data that is shown for each selected scenario is:
- Safety Stock - The amount of additional stock that is used to mitigate risk of stockouts caused by uncertainties in supply and demand. Safety Stock for a resource/location/product is calculated based on the following input data: desired service level, demand and lead time variability (if considered), demand, (replenishment) lead time, order quantity and forecast period length.
- Cycle Stock - The amount of stock that is planned to be used during a cycle of your inventory. It is the biggest of either the demand in the review period (if you consider manual periodic replenishment), or the order quantity.
- Max (= Safety Stock + Cycle Stock) - The Maximum Stock equals Safety Stock plus Cycle Stock. At any point in the current period, this maximum can function as an upper bound of your stock levels.
- AVG (= Safety Stock + 0.5 * Cycle Stock) - The average stock equals Safety Stock plus half of the Cycle Stock. During the current period, on average, this will be the amount of stock, as on average, you will have your full safety stock, while your cycle stock keeps going up and down.
- Delta (= Actual Stock - Max) - This represents the difference between Actual Stock (in loaded dataset) and Maximum Stock (calculated in the scenario). It is colored based on the following (numbers are just examples):
- Too Much (Yellow) - There is too much Actual Stock. This is undesirable as it results in unnecessary stock costs.
- Within Target (Green) - Actual Stock is within target. This means that the inventory level is within the desired lower bound (Safety Stock level) and upper bound (Cycle Stock level).
- Service Risk (Orange) - Actual Stock is below the Safety Stock level but above half of the Safety Stock level. This means that there is a service risk.
- Too Little (Red) - There is too little Actual Stock. It is below half of the Safety Stock level. This is very undesirable as the service risk is big.
In the picture below, you can see how the different stock types and colors relate to each other. Delta is colored based on the area in which the Actual Stock is.
The header of the table indicates whether you see the data in units or values. This can be changed on the View panel. It also shows whether all resources/locations/products are displayed or whether a filter is applied (which can be changed on the Product Filter and Resource Filter panels).
After inspecting your created scenarios, you can export one (or more) scenarios to the database such that you can use them in another app (S&OP). You can do this by clicking on Export Scenario(s) in the page actions menu.
The Export Results dialog will pop up and you can select here which scenario(s) you want to export to the database. After that, click on Finalize. The selected scenarios will now be exported and become dataset(s) in the database. Read here about the switches on this dialog.
It is possible to delete scenarios in phase 2 of the app. You can read here how you can do that. Please note that scenarios that are saved to the database, become datasets. When deleting a scenario, datasets are not deleted from the database. You can delete a dataset from the database in Data Navigator.
Periods in Inventory Planning¶
Inventory Planning calculates stock data for a single period. It is possible to calculate Safety Stock for multiple periods. In your configuration you must indicate that you want this, after which you can provide demand data for multiple periods. The app will calculate a coverage value based on the single period Safety Stock calculation, and with that coverage value, it calculates the Safety Stock for multiple periods. In this calculation, it is assumed that there are no changes over the horizon regarding the network. Only multi period demand data is used. When your dataset does contain other data for multiple periods, this data is ignored. In the Inventory Planning app, you will only see data for the current period. Safety Stock is also only visible for the current period, but when exporting the output data to the database, the multi period Safety Stock is exported as well.
In the View panel on the right, you can select in what unit of measurement you want the data to be displayed. You can see the data either in value (currency specified in your configuration) or in units. In case you have multiple units of measurement provided in your dataset, you can see the data in either the base unit (specified in your configuration) or the product UOM when that data is displayed on a product level.
In the View panel you can also select which types of stock are displayed. Turning off some of them, might be convenient when you want to compare two columns. An explanation of these stock types can be found at Scenario Stock - Table above.
In the Scenarios panel on the right, you can select which scenarios you want to compare on this page. Read here about the switches on this side panel.