Scenario: Unplanned inventory consideration

See the business use cases of how the sales are managed when the unplanned inventory quantity is considered that uses the existing rules framework.

Overselling due to predicted cancellations

Consider that the seller wants to sell a chair at New Paltz, Colonie, and Woodbury and the overselling period ends in 5 days from today. As a Systems Integrator, define the following configuration:
Effective period
  • From - Today
  • To - +5 days
Rule condition
  • Item - Chair
  • Applicable nodes - New Paltz, Colonie, Woodbury
  • Unplanned Lead Day is 0 day
  • Unplanned Quantity is 10 for each participating node
Consider the following inventory picture:
Applicable nodes Quantity
New Paltz 1
Colonie 3
Woodbury 5
Following is the inventory picture from today until 5 days when the unplanned inventory is considered:
Applicable nodes Quantity
New Paltz Quantity + unplanned inventory quantity = 1 + 10 = 11
Colonie Quantity + unplanned inventory quantity = 3 + 10 = 13
Woodbury Quantity + unplanned inventory quantity = 5 + 10 = 15
The inventory is back to original quantity once unplanned inventory rule expires.

Overselling with Supplier Lead Time

Consider that the seller allows supplier lead time consideration for chair at New Paltz, Colonie, and Woodbury with lead time of 5 days. As a Systems Integrator, define the following configuration:
Effective period
From - today
To - +10 days
Rule condition
  • Item - Chair
  • Applicable nodes - New Paltz, Colonie, Woodbury
  • The supplier lead time is 5 days from the date of request and the rule is valid until the end of effective period.
  • The unplanned quantity is 10 qty.
Consider the following inventory picture on March 1 (today):
Applicable nodes Quantity
New Paltz 1
Colonie 3
Woodbury 5
Following is the requested inventory picture from March 1 to March 5, March 5 to March 10 and on March 10 when the unplanned inventory quantity is considered:
Applicable nodes Onhand availability from March 1 to March 5 Future inventory from March 5 to March 10 Inventory on March 10
New Paltz 1 Quantity + unplanned inventory quantity = 1 + 10 = 11 1
Colonie 3 Quantity + unplanned inventory quantity = 3 + 10 = 13 3
Woodbury 5 Quantity + unplanned inventory quantity = 5 + 10 = 15 5
The unplanned inventory rule expires on March 10, so it's not considered.

Detection of unplanned inventory

When unplanned inventory is in effect, the vendor must take proactive step in ensure back-filling and cancellation of order beyond expected cancellation window. The following example illustrate ways to detect the unplanned event and take action:

Consider the following payload: 
"currentAvailability": {
   "availableQuantity": 7.0,
   "unplanned": {
     "availableQuantity": 5.0,
     "demandQuantity": 3.0,
     "reserveQuantity": 2.0
     }
}
The unplanned.availableQuantity provides the total quantity available from unplanned. The demand and reserve quantity illustrate excess order had been captured.

In the case of a sales event where overselling is permitted, the vendor should ensure by the end of the sales period where the unplanned quantity uplift is removed, any excess demand should be canceled if they cannot be fulfilled.

When unplanned demands is captured against future inventory, the vendor should create a supply replenishment to address any quantity found under futureAvailability.unplanned.demandQuantity and futureAvailability.unplanned.reserveQuantity.