Critical Shortage
A critical shortage is an Exception that occurs when a part is under-stocked at a location. This means that the part stock level is below Safety Stock multiplied by the Critical Shortage Threshold.
Critical Shortage = Stock Level < (Safety Stock x Critical Shortage Threshold)
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The Critical Shortage Threshold is defined on the AutoPilot Parameters page.
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For example, if the Critical Shortage Threshold is set at 90%, a critical shortage is declared when the on hand amounts fall below 90% of the Safety Stock. If the threshold is set to 100%, a critical shortage is declared when the on hand amount is at Safety Stock.
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Critical shortages only consider amounts immediately available to the customer, while Stock Maximum levels (used to calculate excess) consider ALL actual stock amounts, including On Hand Bad and In Repair (except In Transit). Therefore, it is possible for a SKU to be both critically short and in excess.
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There are some differences between critical shortages for non-repairable parts and repairable parts:
• For a non-repairable part, critical shortages occur when a part's On Hand is less than its Critical Shortage Threshold multiplied by the Safety Stock.
• For a repairable part, critical shortages occur when a part's On Hand Good is less than its Critical Shortage Threshold multiplied by the Safety Stock (which is Demand Accommodation * Demand Satisfaction).
On the Supply Chain View of the Planner Home Page
This column represents the number of orders that have an critical shortage. Click a hyperlink in this column to open the Critical Shortages page.