Story

As a user, I would like to see the Safety Stock calculation to use the unadjusted inside sales value instead of an adjusted forecast or a forecast that uses outside sales.

I would like a new config to enable and disable which value from the forecast is used in the Safety Stock calculation.

Details

CFA would like to change the way Safety Stock is calculated.

Right now, Safety Stock is calculated using the forecasted value provided by CFA plus any manual user adjustments and outside sales. This presents a problem as safety stock is meant to provide a cushion for items sold in the store. Most outside sales or sales that require a manual forecast adjustment are accounted for outside of the ordering process. When these forecast adjustments are added to the safety stock calculation we get an artificial inflation of the value that leads to over-ordering.

Location: "Mobile > Forecasting > Use Raw Inside Sales for Safety Stock"

Confluence Pages

https://cfacorp.atlassian.net/wiki/spaces/IN/pages/53344611/Suggested+Ordering+-+How+to+calculate+Safety+Stock
https://fourthlimited.atlassian.net/wiki/spaces/RBCD/pages/1658449011/Ordering+Safety+Stock
https://cfacorp.atlassian.net/browse/INF-7378

Example for Testing

Current Calculation

• Safety Stock for Item A: 2 Days
• Order created date/time: Dec 10, 6am
• Cover Until date/time: Dec 14, 6am
• Forecast range: 3 days (Dec 10, 11, 13)
• Unadjusted Inside sales forecast usage: 21 cases
• Manually adjusted forecast usage: 26 cases
• Usage from catering orders (outside sales): 7 cases
• Net forecasted usage: 33 cases
• Average daily net forecast usage: 11 cases (net forecast usage / forecast range)
• Days to cases conversion: 22 cases (average daily net forecasted usage * safety stock Days)

Expected Update

• Safety Stock for Item A: 2 Days
• Order created date/time: Dec 10, 6am
• Cover Until date/time: Dec 14, 6am
• Forecast range: 3 days (Dec 10, 11, 13)
• Inside sales forecast usage: 21 cases
• Manually adjusted forecast usage: 26 cases
• Usage from catering orders (outside sales): 7 cases
• Net forecasted usage: 33 cases
• Average daily unadjusted forecast usage: 7 cases (Inside Sales forecast usage / forecast range)
• Days to cases conversion: 14 cases (average daily Inside Sales forecasted usage * safety stock Days)

AC

1. Safety Stock in all forms; Days, Percentage, Items, is calculated based on the Inside Sales forecast value provided by CFA without any adjustments.
2. Outside Sales are not used in the safety stock calculation.
3. The calculation adds up correctly with the new variable.
4. When the config is enabled, Safety Stock is calculated using the raw inside sales forecast without adjustments.
5. When the config is disabled, Safety Stock is calculated using all forecasted sales including adjustments.