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Understock Analysis

If the number of spare units available in the inventory falls below a certain level the likelihood of an outage (no spares available when needed) occurring increases. To ensure this does not eventually lead to a shortage situation, pre-emptive measures might have to be taken to reduce the risk of an outage from occurring.

The Understock Analysis function comprises continuous monitoring of the number of units in the repair/re-order cycle and identifies part numbers that are understocked. Given the list of understocked part numbers, the User can carry out a statistical analysis to determine the incremental risk of outage. For part numbers with unacceptable incremental outage risk, the User can then carry out the an analysis with regard to the effect of different pre-emptive measures to mitigate the risk: (i) bring forward the repair return date for some part numbers that are in the repair cycle, (ii) loaning of parts, or (iii) procurement of additional units (subject to budget availability).

Please also see Dashboard and Component Demand Forecaster