Study and projects

Stock Management – Purchase and Production Planning

Stock management is one of the key areas of logistics, often with a considerable potential for logistics cost economies.

The analysis of a company's stock management system is based on a detailed item analysis using a SW tool called LOGIstock. This analysis enables a statistical assessment of the quality of the stock management system in the preceding period by means of a wide range of indicators (average stock level, safety stock, turnover stock, sale/consumption standard deviation, sale/consumption stability, etc.), considering separately the particular warehouses, desk-officers, groups of stock and individual items. Moreover, the item analyses are visualised by means of a graphic representation of the course of the key indicators (stock, input, consumption) in relation to a selected time period (weeks, months)

The analytical outputs are subsequently aggregated using the ABC/XYZ analysis and they are utilised for segmentation of the assortment into groups. Later on a diversified approach will be used on these groups in order to reduce their number. The relevant disposition parameters are generated for the particular items, such as safety stock level, extra order level, optimum volume of purchase, etc. These are later exported to material cards within the ERP system (SAP, Navision, K2, etc.)

In order to maintain the optimum condition and structure of the stock, the calculation of the disposition parameters may be repeated regularly, or the SW LOGIstock may be implemented with the interface to the client's ERP system thus enabling automatic updating of the disposition parameters. Alternatively, it is possible to generate the material requirements straight from LOGIstock.