The columns
- Free - what is on the shelf, plus what is on order and being made, less what open batches have committed. On hand alone reads as comfortable while every metre of it is spoken for.
- On order - units on a purchase order that has not been received.
- Needed - what will be consumed over this material’s own lead time plus restock window. It is your finished-goods sales forecast, walked back through your bills of materials and netted against the finished stock you already hold.
- Order - enough to clear the shortfall and put the buffer back, rounded up to the supplier’s pack size and minimum order.
Where Needed comes from
Three things reduce it, in order:- Finished goods you already hold. Five hundred cookies on the shelf against three hundred forecast sales needs no flour.
- Batches already underway. Their output is coming, and their material is already in Committed, so counting both would deduct the same flour twice.
- Intermediate stock. Dough you hold is dough you do not have to make, so the flour under it is not asked for either.

