Projected Quantity
Projected Quantity
The level of stock that is anticipated for a certain item based on current stock levels and other requirements is known as the projected quantity.
The amount of gross inventory is what is taken into account when planning since it takes historical supply and demand into account.
The planning system uses the predicted inventory to calculate the reorder quantity and monitor the reorder point. The planning engine uses the predicted Quantity to keep track of the safety stock levels. These levels are kept up to handle unforeseen needs.
To identify shortages and decide the appropriate order amount, it is essential to maintain strict control over the predicted inventory.
The following equation can be used to determine projected quantity:
Real quantity equals planned quantity plus requested quantity plus ordered quantity minus reserved quantity, reserved quantity for production, and reserved quantity for subcontracting.
Actual Qty: Amount on hand in the warehouse. This is your genuine stock, in physical form.
Planned Qty: Amount for which a work order has been placed but has not yet been produced.
Requested Qty: quantity sought after submitting a material request. Depending on the type of material request, it is added upon submission and deducted upon creation of a purchase order, work order, or stock entry against it.
Ordered Qty: Buy quantity ordered but not received (through a purchase invoice or a purchase receipt).
Reserved Qty: Amount that your customer (the sales order) requested for sale but did not receive (via a Delivery Note). When a sales order is placed, this number rises, and when a delivery note or sales invoice is made in response to that sales order, it falls.
Reserved Qty for Production: When a work order is submitted, raw materials are reserved; however, when raw materials are moved from the warehouse to the work in progress via a stock entry, the reserve is lowered.
Reserved Qty for Subcontracting: When a purchase order for subcontracting is submitted, raw materials are reserved. This number decreases when raw materials are moved via a stock entry to the supplier warehouse. Click here to learn more about subcontracting.