IN-L-X Inventory Turns
Purpose of Program
This program assigns an Inventory Turnover category to items based on on hand quantity and pending supply (on Purchase Order or on Work Order) compared to usage over 2 time frames which default to 12 (X) and 3 (Y) months but can be changed and generates a report showing the current status, prior status and when it was changed. When you choose Export to file it also includes a column for average cost so you can see the value tied up. The groups are defined as follows:
Group A – On Hand and/or On order inventory (supply) with no demand and no transaction activity in X months. Truly Dead inventory.
Group B – On Hand and/or On order inventory (supply) with no demand and no transaction activity in Y months. Dying inventory but something did move within the past X months or it would be in group A.
Group C - On Hand and/or On order inventory (supply) in excess of demand plus the last X month usage. We need it and are using it but have more than X month’s worth
Group D - On Hand and/or On order inventory (supply) in excess of demand plus the last Y month usage. We need it and are using it but still have more than we need for Y months
Group E - On Hand and/or On order inventory (supply) equal to or less than demand plus the last Y month usage. This item is in control.
General Program Operation
Define the filters of items to be processed filtering by Item Number, Type, Class, Category, Primary Vendor, Customer, Active Status and defile the number of months to consider for turns, with X greater than Y. You can also opt to ignore items with 0 on hand and 0 demand.