Excess Limit

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Excess Limit

The limit above which inventory is considered in excess. The calculation of Excess Limit is in relation to the Order Policy Type that is used:

• When using Trigger Point or Time-Phased ROP, it is calculated as Stock Maximum

• When using Time-Phased Safety Stock the limit is the most you can have On Hand following the ordering rules. The basic calculation is (Safety Stock + EOQ – 1)

If order sizing rules are used, then the calculation of Excess Limit becomes more complicated, as it depends on the combination of the order sizing rules, rounding, and the addition of Excess Burnout Days.

Appears on these pages

• Interactive Planner Worksheet (Plan)

◦ Inventory Position Container

◦ Order/SKU Parameters Container

• Balancing Parameters

• Daily Balance Detail Report

• Daily Balance Summary Report

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