13. Configure the inventory policy¶
An inventory policy converts future demand into inventory targets for
material-location combinations. In this tutorial, it protects all 10 finished
goods at DC_EAST and DC_INLAND with 5 days of safety-stock coverage. This is not production
anticipation or prebuild; it is variability protection expressed as days of
future demand.
Materials and locations from chapter 2 are prerequisites. The policy header must also exist before its details.
Tutorial decision¶
| Parameter | Value |
|---|---|
| Operational Model | MTS |
| Reorder Model | DRP |
| Safety Stock Type | DAYS |
| DRP Safety Stock | 5 |
| DRP Maximum Stock | 18 |
| Effective dates | January 1 through December 31, 2027 |
Load order¶
| Order | File | Dataset | Depends on |
|---|---|---|---|
| 11 | 11-inventory-policy.xlsx |
Header and effective dates | — |
| 12 | 12-inventory-policy-details.xlsx |
Material-location rule | policy, material, and location |
Open Inventory Policy¶
Hover over Data and click Operations > Data Operations.
On the open page, select Configuration > Supply Planning > Inventory Policy. In Topic, choose Inventory Policy first, then Inventory Policy Details.
For the selected topic, use Download > Download as XLSX to obtain the template. After checking the file, return to the same topic and use Import to choose it and run the load.
1. Load the policy header¶
Action required
Download the template, open the workbook, and import the header before any detail row.
Configuration > Supply Planning > Inventory Policy > Inventory Policy.
Select Import, choose 11-inventory-policy.xlsx, and click Import
Inventory Policy.
| Field | Meaning | Tutorial value |
|---|---|---|
Id |
Code referenced by the detail rows. | TUTORIAL_FG_POLICY |
Priority |
Application order; a lower number means higher priority. | 1 |
Start Date |
First effective day. | 2027-01-01 |
End Date |
Last effective day. | 2027-12-31 |
Applicable policies are evaluated by ascending priority. Avoid overlapping effective periods that leave two rules competing for the same combination.
Checkpoint: the Download should return TUTORIAL_FG_POLICY, priority 1, and the
full 2027 effective period.
2. Load the material-location rule¶
12-inventory-policy-details.xlsx
Action required
Download the template and import all 20 details only after TUTORIAL_FG_POLICY
exists.
Configuration > Supply Planning > Inventory Policy > Inventory Policy Details.
The catalog screen above shows Inventory Policy Details in the Topic column.
Select Import, choose 12-inventory-policy-details.xlsx, and run the
import for the selected topic. The controls use the same layout shown for
Inventory Policy; confirm the topic title before loading.
| Field | Meaning | Tutorial value |
|---|---|---|
Inventory Policy Id |
Policy to which the rule belongs. | TUTORIAL_FG_POLICY |
Material Id |
Material protected by the rule. | one of the 10 finished goods |
Location Id |
Point at which the inventory target is calculated. | DC_EAST or DC_INLAND |
Operational Model |
How the material is supplied. | MTS |
Reorder Model |
Replenishment logic. | DRP |
Safety Stock Type |
Protection unit: coverage days or quantity. | DAYS |
DRP Safety Stock or Kanban Target Stock |
Target coverage used as safety stock. | 5 days |
DRP Maximum Stock |
Maximum expressed in the same type unit. | 18 days |
Checkpoint: the Download should reproduce 20 rows: all 10 finished goods
at DC_EAST and DC_INLAND, always with TUTORIAL_FG_POLICY, MTS, DRP,
DAYS, 5, and 18.
3. Understand 5 days in a monthly calendar¶
The calculation converts days using the average month length:
5 ÷ 30.436875 = 0.1643 monthly period.
For the January bucket, coverage starts at i + 1: it uses approximately
16.43% of February demand.
| Coverage component | Weight | Example with future demand |
|---|---|---|
| February 2027 | 16.43% | 100 × 16.43% = 16.43 TON |
| January safety-stock target | — | 16.43 TON |
This is an average bucket calculation, not a count of actual days in each
month. With DAYS, the target follows future demand, while the plan still
considers initial inventory, receipts, lead times, capacity, and other
constraints.
4. Link the policy to the profile¶
Action required
Before running the Supply Plan, select TUTORIAL_FG_POLICY in the Supply Planning
execution profile and save the profile.
This link belongs to execution configuration, not to these two file uploads.
Completion criterion¶
Complete the chapter when both Downloads reproduce the header and detail and the execution profile points to the correct policy. Import proves the data was registered; the 5-day effect is observed only after a Supply Plan run.
Return to the supply network, or continue with initial inventory.