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| other_stuff:virtual_stores [2026/03/31 03:36] – [Threshold for understock] Mark Glover | other_stuff:virtual_stores [2026/03/31 04:34] (current) – [Threshold for overstock] Mark Glover |
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| == Threshold for overstock == | == Threshold for overstock == |
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| The months of stock of an item for it to be considered as overstocked. In most real-life situations, the volume of storage available is limited and the Threshold for overstock can assist in managing storage space by preventing space being unnecessarily occupied. An alert is triggered for an item if the total quantity in stock (including all stock lines) divided by the AMC of the item (calculated using the last 12 months' usage in the current store) is greater than or equal to this threshold number. The default is 6 months.<WRAP center round tip> | The months of stock of an item for it to be considered as overstocked. |
| Clearly, the Threshold for overstock must be more than the [[other_stuff:virtual_stores#threshold_for_understock|Threshold for understock]]. The default Threshold for overstock value of 6 may be suitable for a store with a 1-monthly order cycle. For a central store with an annual order cycle, then this figure should probably be set to <wrap em>no less than 36</wrap> | |
| | <WRAP center round alert 60%> |
| | Threshold for overstock is //NOT// relevant to the potential of stock to expire. Whether you have expiring stock is driven by the shelf life and AMC of the stock that you have, not some arbitrary number of months. The [[reports:items_and_stock#expiring_items|Expiring items report]] will provide insights into this. |
| | </WRAP> |
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| | In most real-life situations, the volume of storage available is limited and the Threshold for overstock might assist in managing storage space by preventing space being unnecessarily occupied. An alert is triggered for an item if the total quantity in stock (including all stock lines) divided by the AMC of the item (calculated using the last 12 months' usage in the current store) is greater than or equal to this threshold number. The default is 6 months.<WRAP center round tip> |
| | Clearly, the Threshold for overstock must be more than the [[other_stuff:virtual_stores#threshold_for_understock|Threshold for understock]]. The default Threshold for overstock value of 6 //may// be suitable for a store with a 1-monthly order cycle. For a central store with an annual order cycle, then this figure should probably be set to <wrap em>no less than 36</wrap> |
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| | In any case, if storage space is what is driving this threshold, then it would be more valuable to have some parameter associated with the volume of stock, rather than the number of months' worth of stock. This is an imperfect parameter, and can only be used as a very rough indicator |
| </WRAP> | </WRAP> |
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