13. Configure the inventory policy¶
An inventory policy converts future demand into inventory targets. This tutorial uses 40 days of safety-stock coverage. This is not a production anticipation or prebuild rule; it is variability protection expressed as days of future demand.
Tutorial decision¶
| Parameter | Value |
|---|---|
| Operational Model | MTS |
| Reorder Model | DRP |
| Safety Stock Type | DAYS |
| DRP Safety Stock | 40 |
| DRP Maximum Stock | 40 |
| Effective dates | January 1 through December 31, 2027 |
Tutorial files¶
11-inventory-policy.xlsx 12-inventory-policy-details.xlsx
1. Open Inventory Policy¶
Hover over Data and open Operations > Data Operations. In the catalog, follow Configuration > Supply Planning > Inventory Policy.
2. Understand 40 days in a monthly calendar¶
The calculation converts days using the average month length:
40 ÷ 30.436875 = 1.3142 monthly periods.
For the January bucket, coverage starts at i + 1: it uses all of February
and approximately 31.42% of March.
| Coverage component | Weight | Example with future demand |
|---|---|---|
| February 2027 | 100% | 100 TON |
| March 2027 | 31.42% | 120 × 31.42% = 37.70 TON |
| January safety-stock target | — | 137.70 TON |
This is an average bucket calculation; it does not count the actual calendar days in each month.
3. Load the policy header¶
| Id | Priority | Start Date | End Date |
|---|---|---|---|
IP_40D_2027 |
0 | 2027-01-01 |
2027-12-31 |
Applicable policies are sorted by ascending priority and the first one wins. Avoid overlapping periods with the same priority.
4. Load the details¶
| Inventory Policy Id | Material Id | Location Id | Operational Model | Reorder Model | Safety Stock Type | Safety Stock | Maximum Stock |
|---|---|---|---|---|---|---|---|
IP_40D_2027 |
FG_TISSUE_DOUBLE_12 |
DC_EAST |
MTS |
DRP |
DAYS |
40 | 40 |
Action to perform
- Import Inventory Policy first.
- Import Inventory Policy Details second.
- Reconcile the ID, priority, effective dates, material, and location.
- Link the policy to the Supply Planning execution profile before running the plan.
Impact on the plan¶
With DAYS, the target increases when future demand increases and decreases
when it falls. It does not mean that 40 days of product are produced
immediately; the plan still considers initial stock, receipts, lead times,
capacity, and other constraints.
Completion criterion¶
The policy and its details must exist, cover the full 2027 horizon, and be linked to the correct material-location without ambiguous overlaps.
Return to the supply network, or continue with initial inventory.