Process Group/Policy Details
Subject: Inventory
Process Group: Planning
Title of Policy: Inventory Planning
Effective Date: 07/01/2014
Approved/Revision Date: 07/01/2014
Approved by: State Controller
Process Group Description
The process group includes all related tables necessary for the planning of purchases, quantities, and stock item usage as related to inventory location in warehouses operated by the State of Colorado.
Definitions:
BATCH JOB: A grouping process that incorporates multiple transactions into a single movement within CORE.
Rationale or background to policy:
This policy is required to achieve optimum inventory levels by using Batch Jobs and reports from InfoAdvantage, and not a manual process. Forecasting inventory levels, either for purchases into inventory or requisitions out of inventory, can be streamlined with the CORE. Using Batch Jobs and reports from InfoAdvantage, a warehouse has the ability to accurately calculate optimum inventory levels through trends in usage, demand, lead time averages, and reorder points for commodities. Calculating more accurate usage levels will allow proactive purchases into inventory to avoid overstock and out of stock situations.
Policy Statement:
INV.PO.05 Inventory Planning
Departments shall use Batch Jobs and infoAdvangate reports to set stock levels within a warehouse’s inventory. Departments shall use the Lead Time Calculation, Report Point Calculation, and the Forecast Demand models in the Batch Jobs process, to more accurately set the respective inventory “min/max” levels. Departments shall use reports in infoAdvantage and automated forecasting elements to further calculate appropriate inventory levels.
Procedure Statement:
INV.PO.01.PR.01 Planning
Info Advantage allows Inventory users to adjust the forecasting quantity levels on a given commodity within a given warehouse. Minimum quantities are set to establish a quantity of on-hand units which the warehouse should not issue below. Alternatively, a maximum point can also be set which establishes a quantity that a warehouse should not have more than. Since each commodity may have different uses and importance across the State, each department may elect the levels.
The “min/max” levels are adjusted with the “Inventory Inquiry” page, which can be located on the Inventory Table (INVN). From the Home page, users should direct their “Global Search box” navigation to INVNQ. From within the Inventory Inquiry page, users should then drive their search by the warehouse required. From the body of the table, use the search functionality to locate the warehouse needed. Select the required commodity from the list at the top of the page, and select the Quantities header. From this page users can review the following quantity aspects on a given commodity.
On Hand
Backordered
Reserved
On Order
Released
Currently Requested
In Transfer
Maximum Issue
Available
Minimum Issued
Last Counted