Inventory Reservation

The StreamV system maintains information about the quantity of each item that is reserved and allocated to open orders in the inventory master file.  The system also maintains the total quantity of each item that is on order from your vendors or being built in the shop floor system in each inventory master record.

The following terms are used when describing the Inventory Reconciliation Process

On Order Quantity: The total of the open shop orders and purchase order lines for the inventory item.  The On Order Quantity stores the total quantity of the item that is on order from your vendors or being built in house.

Sales Lead times

The sales lead time for an item is used to control the "scheduling window". When a sales order or a shop order line has a schedule date that is within the "window" or date range being used based on each item, the system does the following.

1.) The inventory item shows up on the purchasing recommendations report (it tells you that you need to order the item if you do not already have enough on hand and on order to handle the sales and shop orders in the current window).

The PO recommendation report will also ensure you have the minimum quantity you want to keep in stock or on the shelf based on the reorder point field that is maintained in your inventory record.

Logic is to cover the current sales and shop orders (inventory reserved quantity) and to ensure you have at least minimum reorder point quantity on hand after covering the current orders.

2.) The system tries to allocate or assign inventory to the current sales and shop order lines (when inventory should be assigned to a customer order or a shop order) and shipping (based on the schedule date of the sales order line and the number of days ahead you print picklists (this is of the item to is based solely on the information in the Cove inventory record a

Reserved information is the amount of product that a company has orders for from its customers.  The "On Order quantity in the inventory file is the amount of product the company has on order with the company's vendors.

There are two reserved fields in the inventory master record for each item, at each location.  The .QTY_RSV (reserved) field contains the number of units on order for delivery within the "scheduling window.  The .TOT_RSV (total reserved) field is the total amount of the product that the company has orders for.  These fields are maintained on both an on-line and batch basis.  The STREAM order entry system maintains each to of these fields on-line during order entry.  When the order is saved, the system checks the scheduled date for each line item, checks the scheduling period to determine if the scheduled date is within the "schedule window", and then increments the .QTY_RSV and .TOT_RSV appropriately.  The order reconciliation program (FV061X01) updates both of these fields on a batch basis.  The purpose of running the batch update is to update the .QTY_RSV to reflect forward scheduled items falling into the current scheduling period. 

FV061X01 supports "BATCH mode" processing, and may be made part of the nightly processing.

The SA may select the number of days on the "scheduling period" with the SCHRANGE parameter in the CONTROL file.  The SCHRANGE parameter is the desired size of the scheduling period in days.  If this parameter is not present, or is set to zero, the .QTY_RSV and .TOT_RSV fields will always be the same.


Inventory Allocation