Surplus stock is defined as the quantity over the long and/or short-term surplus points. These points are calculated. Short term point is calculated based on line point and EOQ. The long term surplus point is calculated based on the values in Replenishment Parameter Maintenance (ICF990) for either seasonal or non-seasonal items. For long-term surplus, the usage calculation, number of days' supply over available stock, and the number of days an item must be establish to calculate long-term surplus are used to determine the long-term surplus point.
Short- and long-term surplus points may differ or be the same. Stock quantities may be all short-term surplus, all long-term surplus, or a mixture of both. There may also be no surplus stock at all, if quantities on-hand are below any given surplus point. For example, a surplus point of 10 means, if you have stock quantities of 100, then, starting at quantity 10, the rest is surplus. A quantity of 90 is in surplus even though ICWHSE shows the surplus point 10. It does not mean a quantity of 10 is in surplus.
Note: The Replenish check box on the Restock view of Warehouse/Item F/M (ICF920) is one of the controls for calculating surplus. If the Replenish check box is unchecked, then this warehouse/item does not have surplus processing and the new long- and short-term surplus fields are “N/A”. When changing the Replenish check box from unchecked to checked, the new long- and short-term surplus fields are not updated until the continuous background process, S4, is run and calculates the surplus for this now replenished item. You must save the change in Warehouse/Item F/M and exit. Once S4 is run, when you return to Warehouse/Item F/M any noted surplus is displayed.
You can set these Surplus Stock Parameters.
The settings for this section can be defined at the company level only.
See also
Understanding replenishment values
Entering safety stock replenishment parameters
Replenishment Parameter Maintenance procedures
Replenishment variables calculations