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The ascertainment of need is one of the most important tasks of stock management. It is subsection of the procurement and concerns themselves with the planning of in the future needed quantities and can primarily into the ranges

  • Assortment decision and
  • Quantity decision

are partitioned.

For each decision range applies to determine it,

  • there are which decision alternatives,
  • which the decision criteria are and
  • which decision making aids are available.

In principle it concerns to decide which materials and materials are needed for the production, in which quality, in which quantity - related to a certain period (month, year) -, to which costs and to which conditions. Whereby the costs are not only limited here to the purchase prices of the individual materials, but among other things also at storage costs as well as interest costs by bound capital extends. These can be lowered by appropriate assortment and mixing price increase or avoided at all.

Assortment decision

Here is decided, which and how many different materials types are needed for production, and how high the quality of the individual materials should be.

Decision alternatives

As decision alternatives those are available assortment width as well as the assortment depth. By assortment width one understands the number of different used materials types, by assortment depth the number of alternative materials types for a certain intended purpose. A further alternative represents the possible quality - highly, on the average, low - for each individual materials type.

Decision criteria

This defaults of the manufacturing can be, which need determined materials in a given quality by appropriate production procedures. Stock management can contribute here however by avoidance of to high quality of individual materials types, in relation to the remaining used materials, to the cost reduction. This cost reduction can be achieved also by means of substitution by new, more economical materials.

Decision making aids

As decision making aid within this range the value analysis can serve. The standardization of certain parts as well as the type clearance in production offer further support with the assortment selection. Computer Aided Design (CAD) is an important instrument for the assortment selection and the use of standard parts.

Quantity decision

In the quantity decision is between primary to differentiate secondary and Tertiary period need.

Primary requirements is the need at products, saleable building groups and spare parts in form of an also capacity-moderately roughly co-ordinated production program, in which kind, quantity and manufacturing dates of the finished products are fixed.

The secondary requirement is the need of raw materials, individual parts and building groups, which are needed for the production of primary requirements.

The Tertiary period need is the need at auxiliary materials, fuels and wear tools, which are necessary for the production of the secondary and primary requirements.

By gross requirements the period-referred total requirement is to be understood, which is summarized from the secondary and/or Tertiary period need and the additional requirements.

The net requirements is calculated, by taking the stock and the stock on order off from the gross requirements and the reservations and adds the safety stock amount.

Gross/net requirement calculation 

Secondary/Tertiary period need -------------------- = gross requirements - stock + reservations - stock on order + safety stock amount -------------------- = net requirements

To note it is with the fact however that this calculation is only theoretical, since at each part with safety stock amount is not worked and because here is assumed the entire stock on order is actually supplied at the correct time, in correct quantity and quality.

Decision alternatives

Within the range of the quantity decision there are no real decision alternatives, but can here only between

  • Quantitative determination and
  • Quantitative determination

are differentiated. In case of the demand quantity determination no genuine decision is made on the part of stock management, but the quantitative determination is only one computing act, which is determined by the outputs. During the quantitative determination it is examined whether a decrease of the quantities which can be procured and/or a temporal shift is possible. Measures in addition can be superelevated a lowering of the service degree, should this, or be the lowering of the committee ratio by appropriate quality assurance.

Decision criteria

As decision criteria primarily the defaults serve the manufacturing. An appropriate database over committee ratios and need times can serve as decision criteria and as support for the demand quantity regulation.

Decision making aids

By means of the ABC analysis the arrangement expenditure is determined. Thus quantitative controls are accomplished particularly exactly at A-goods and reduced at according to B and C-goods their proportional values.

With program-bound procedures the quantitative determination is derived from the production programme.

With consumption-bound procedures (stochastic procedures) materials requirements are determined due to of quantities consumed of the past. This method presupposes necessarily a suitable database over past consumption.

Those Estimation is a further method of the material requirements planning. Are not available no past values and experiences and also necessary primary requirements are well-known, how this is e.g. with new products the case. For support the market study, e.g. by dealer questionings, can be used.

See also

  • Material requirement Planning
  • Order time
  • Component level

Literature

  • Oskar green: Industrielle stock management. In: Marcell Schweitzer (Hrsg.): Industrial company teachings. 2. Edition. Munich 1994, P. 447-568, ISBN 3-8006-1755-2

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