Celonis Product Documentation

The sum total of current inventory at the time of the last data load.

An additional quantity of a material held in the inventory to reduce the risk that the material will be out of stock. Safety stock acts as a buffer in case sales are greater than planned or the supplier is unable to deliver the additional units at the expected time. In the Inventory Management Master Data Improvement app, we calculate a recommendation for the safety stock level using King’s formula (see Business logic of the Inventory Management Master Data Improvement app). In the other Inventory Management apps, we use the value from the source system.Business logic of the Inventory Management Master Data Improvement app

The larger of the minimum lot size (minimum order quantity), and the average replenishment lead time multiplied by the average consumption per day (over the last 24 months).

The sum of the safety stock level as set in the master data (which can be based on our calculations if you choose), and our calculated initial stock level. The unit for target stock is your SKU (stock keeping unit).

This condition means that the excess inventory rate is 100% and there is no open demand from reservations, sales orders, or independent requirements.

This condition, also known as Overstock, means that the current inventory on hand exceeds the target stock level.

We calculate active stock using the ratio between target stock and actual stock. When the ratio is greater than 1, it means that there is less actual stock than the target stock level. In this case, active stock equals inventory on hand. The unit for target stock is your SKU (stock keeping unit).

This condition means either that the current inventory on hand is greater than zero but smaller than the current safety stock, or that the current inventory on hand is zero but the available consignment stock is greater than zero.

This condition, also known as Stockout, means that the current inventory on hand and consignment stock are both zero, while the current safety stock is greater than zero. We evaluate this on a Material-Plant basis.

The minimum stock level that has never been undercut in the last 2 years. A combination of material and plant is flagged for untouched stock if this value is greater than zero and the overall inventory on hand is above the safety stock, unless the inventory on hand is lower than current open sales orders (so every unit on hand is technically already sold).

The minimum amount of an item to hold in stock, such that when the stock falls to this amount, the item must be reordered. In the Inventory Management Master Data Improvement app, we calculate this using the recommended safety stock level, the actual replenishment lead time, and the average daily consumption. In the other Inventory Management apps, we use the value from the source system.

The time between the event of creating a purchase order, and the timestamp when the last goods receipt was assigned to it.

The time between a production order's production start date, and the production finish date assigned to it.

An ABC analysis involves applying Pareto's rule on the value of individual materials. The analysis ranks materials according to their value contributions in terms of total consumed value. An ABC analysis is done to classify materials according to their usage value, or number of objects.

During ABC analysis, we assign each combination of material and plant one of these indicators:

An XYZ analysis is based on the dynamics of consumption. The analysis uses the variance coefficient of consumption or sales in a specific time horizon. An XYZ analysis is done to classify planning objects according to the variance in a specific coefficient.

During XYZ analysis, we assign each object one of the following indicators:

The ABC and XYZ indicators are combined to classify the material. For example, a material that has the values BY could be a material with medium volume and seasonal demand.