Potential Out of Stock Report - Stock Control

This can be one of the most useful reports to use in the stock system. It attempts to highlight those stock items of which it is possible you will run out unless you order some more. A stock system can pay for itself just by ensuring you do not lose sales by having insufficient stock to meet demand.

There are two ways in which a stock item may find itself printed on this report.

Firstly, if either physical stock or free stock is less than the minimum stock level set for this product then it is reported. You should set the minimum stock so that there is sufficient to cover you in the period it takes you to get more stock (the lead time).

Secondly, in case the pattern of demand has changed, the computer takes the estimated usage figure, multiplies it by the lead time it will take you to get more stock, and compares that to the physical and free stock figures. If either of these is less than the figure it has calculated, it prints the stock item — it foresees a danger that you might run out of stock unless you order some more quickly.

The stock item is not printed, however, if either the lead-time or the estimated usage figures is zero nor is it printed if the item is out of stock completely (i.e. a zero physical). The way to ensure that you are not prompted by this report to re-order items you no longer wish to stock is to set the lead time and minimum to zero.