Inventory strategies
How the inventory strategy of a product works: the strategy, the source of the minimum stock, and how the names appear across the app.
Every product has an inventory strategy. It tells Flowlity whether to keep stock of the product, and how to set the minimum stock that triggers new orders. You choose it in two steps: the Strategy, then, for products you keep in stock, the Source.
To set it on your products, see Configure your inventory strategy.
Step 1: the strategy
Make to stock: you keep stock ahead of demand. Supply recommendations are based on a buffer stock level.
Make to order: you order only against firm demand. There is no buffer stock.
No replenishment: Flowlity still forecasts the product, but no supply recommendations are generated for it. Use it for a product you are phasing out, or that you order outside Flowlity.
Step 2: the source (make to stock only)
The source decides how the buffer stock is set:
Demand-based - Flowlity AI: Flowlity computes the minimum stock (the Flowlity Min) for every period, from its forecast and from the uncertainty of demand and supply. You choose how safe you want to be with the Buffer level, between 50% and 99.9%.
Flowlity AI + My min: orders are still based on the Flowlity AI forecast and on your stock, but you set the buffer stock yourself in My Stock Min level, as a Quantity or as a Coverage in days. Flowlity uses this value for the whole horizon.
Reorder point: you set an Order point value. A new order is recommended when the stock reaches or falls below it. Within the reorder point horizon, only firm demand counts, not the forecast.
Reorder point + AI: Flowlity computes the reorder point from lead times and past consumption. You set its Buffer level.
Settings that come on top
Whatever the strategy, a product can also have:
A Lower limit: a minimum the Flowlity Min never goes below. It applies only to the Demand-based - Flowlity AI and Reorder point + AI sources.
A Supply buffer policy: a protection against late suppliers.
A My stock max: an alert when the stock goes above a value. It does not limit the orders.
These are explained in Safety stock settings. With No replenishment, none of them apply.
Which one should I use?
Most products with a usable sales history: Make to stock with Demand-based - Flowlity AI.
A business rule imposes a minimum stock (a contract, a display quantity): Flowlity AI + My min.
You want a classic trigger level that you control: Reorder point. If you want Flowlity to size that level for you: Reorder point + AI.
Custom or expensive items you only buy when a customer orders: Make to order.
Products you no longer want Flowlity to reorder: No replenishment.
Example
A product sells about 100 units a week, with large swings from one week to the next. With Demand-based - Flowlity AI and a Buffer level of 90%, Flowlity raises the Flowlity Min before busy weeks and lowers it in calm weeks. Raise the buffer level to 95% and the Flowlity Min goes up, so you carry more stock and run out less often.
If your contract with a customer says you must always hold two weeks of stock, choose Flowlity AI + My min and set My Stock Min level to a Coverage of 14 days instead.
How the names appear across the app
The same strategy has a different name depending on the screen:
Make to stock + Demand-based - Flowlity AI
MTS, Flowlity AI
MTS Flowlity AI strategy
Make to stock + Flowlity AI + My min
MTS, Flowlity AI + My min
MTS My min strategy
Make to stock + Reorder point
MTS, Reorder point
MTS Reorder point strategy
Make to stock + Reorder point + AI
MTS, Reorder point + AI
MTS Reorder point + AI strategy
Make to order
MTO
MTO strategy
No replenishment
No replenishment
Not listed
Locked fields
Some fields cannot be changed in the panel:
This data is integrated from an external system: the value comes from your ERP or data feed.
Locked by tactical changes: a change made in the Tactical module controls the value.
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