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Stock Projection

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Written by Baptiste Saussine

Anticipate shortages before they stop your production.

Pelico's Stock Projection replays all your planned supply and demand events on top of your current inventory. Day by day, you see how the stock of every part will evolve, when it will run short, and which orders will be blocked as a result.


⚠️ Stock Projection is not agnostic. It is a simulation, not a measurement. It relies on assumptions about future events (planned dates, planned quantities, BoM accuracy). Its quality is directly tied to the quality of the planning data it receives. See Assumptions & limitations below.

1. How it works

The projection is built in three steps.

Step

What happens

1. Starting point

The projection is initialised with the current stock of the part, as received from your source system.

2. Replay

Every planned event that touches this part (receipts, consumptions, productions, shipments) is applied in chronological order, incrementing or decrementing the stock.

3. Result

For any future date, you get the projected stock, plus a coverage status for each order that consumes the part.

The same logic is applied at every level of the Bill of Materials (BoM). A shortage on a component propagates upward and blocks the sub-assemblies and equipment that depend on it.


2. Part types

Three types of parts are included in the projection, depending on where they sit in your BoM.

Type

Definition

Role in the projection

Equipment

The finished part shipped to a customer.

Produced by a Work Order, consumed by a Customer Order.

Sub-Assembly / Sub-Equipment (SE)

An intermediary part: the output of one production order and the input of another.

Both produced and consumed internally.

Component

A part used to produce an equipment or a sub-assembly.

Supplied externally, consumed by production.


3. Events and their impact on stock

Each event type moves the projected stock up or down. Incoming supply is counted at its Availability Date, the moment the part is genuinely usable rather than the moment it arrives at the gate.


💡Availability Date, and why it can be later than delivery. Between a delivery and the moment a part can actually be consumed, there can be internal transport, inspection or admin work. Pelico calls that gap the Processing Delay, and adds it to the delivery or end date to get the Availability Date.

The Processing Delay defaults to zero, so in most cases the Availability Date and the Delivery Date are the same day. When they differ, this is why.

Event type

When stock moves

PO / ASN

Delivery Date + Processing Delay = Availability Date

PR / Planned Order (buy)

Conversion date + part lead time = Delivery Date, then + Processing Delay = Availability Date

WO / Planned Order (make)

Start Date + cycle time = End Date, then + Processing Delay = Availability Date

WO components

Each component leaves stock at its own Consumption Date

STO

Shipment Date + lead time = Delivery Date, then + Processing Delay = Availability Date at the receiving plant

CO / Sales Forecast

Stock leaves at the Shipment Date

Quality Inspection

Stock becomes available at the Release Date

Event

Code

Impact on stock

Notes

Purchase Order

PO

⬆️ Increments a component

Confirmed supply from a supplier.

Purchase Request

PR

⬆️ Increments a component

A purchase demand not yet confirmed. Same impact as a PO in the projection.

Advance Ship Notice

ASN

⬆️ Increments a part

Linked to a PO. Signals an incoming delivery.

Work Order

WO

⬇️ Decrements components

Stock Transfer Order

STO

⬇️ Decrements stock at the origin

Service Order

SO

⬇️ Decrements components

Consumption for maintenance or repair activity.

Customer Order

CO

⬇️ Decrements an equipment

Firm customer demand.

Sales Forecast

SF

⬇️ Decrements an equipment

Anticipated customer demand. Same impact as a CO in the projection.


💡Confirmed vs anticipated. PR and SF are unconfirmed events, but they are treated exactly like their confirmed counterparts (PO and CO). This gives you the most complete forward-looking picture, at the cost of relying on demand and supply that may still change.

Worked example : a Work Order

BoM of MODEL1: 1 equipment of MODEL1 requires 4 × Component_1 and 2 × Component_2.

A WO producing 5 pieces of MODEL1 will therefore:

Part

Movement

MODEL1

+5

Component_1

−20 (5 × 4)

Component_2

−10 (5 × 2)


4. Order of events

When several events fall on the same date, they are not applied at random. Pelico processes them in a fixed sequence.

Priority

Events

Rationale

1️⃣ First

Stock-incrementing events: PO, PR, ASN

Incoming material is made available before it can be consumed.

2️⃣ Then

Internal consumption and production: WO, STO, SO

Production consumes what has just been received.

3️⃣ Last

Customer-related events: CO, SF

Customer demand is served from what remains.

💡Why it matters. Placing customer demand last means that any shortage surfaces on the customer-facing orders first, which is exactly where you want to see it.


5. Coverage status

Every order that consumes a part (WO, SO, STO, CO, SF) receives a coverage status. It answers one question : will the required stock be there on the day this order needs it ?

Status

Meaning

What it tells you

🟢 Covered

Current stock is already sufficient to cover all consumption of this part from today up to and including this order's date.

Nothing needs to happen for this order to be served. It is safe today.

🟡 Conditionally covered

Stock will be sufficient on the planned date, provided that every supply and production event scheduled in between happens as planned.

The order is at risk. Its feasibility depends on upstream receipts or productions landing on time. Monitor the upstream events.

🟠 Delayed

Every supply pegged to this order comes from events that are themselves late or blocked. The need will be met, but not on time.

The order is already going to be late. Escalate rather than monitor. Waiting will not fix it.

🔴 Blocked

Nothing is pegged to this need at all. The current supply and production plan does not meet the predicted demand.

Action is required: expedite supply, re-prioritise, or reschedule the order.


6. Key dates

Pelico computes three forward-looking dates to help you prioritise.

🛑 Production stop date, of an equipment

The nearest upcoming date at which the production of an equipment becomes blocked.

Use it to answer : when does this line actually stop ? It is the deadline you are working against.

📅 Next enablement date, of a blocked order

The nearest upcoming date to which a blocked order (WO, SO and others) could be pushed so that the required stock becomes sufficient.

Use it to answer : if I cannot unblock this order, how far do I have to move it ?


⚠️ Important. Rescheduling a WO to its next enablement date does not guarantee that it becomes Covered. The algorithm that computes this date assumes an optimised production of all its sub-equipments, an assumption your actual plan may not meet.

⛔ Blocking prod date, of a part

If it exists, the nearest upcoming date at which a part will block the production of any equipment.

Use it to answer : which part should I chase first, and by when ? This is the shortage-driven view, as opposed to the equipment-driven view of the production stop date.


7. Make-to-order and serial numbers

In some production modes, specific physical parts are reserved to produce one specific equipment. This is called Make-to-Order (MTO).

In MTO, the Serial Number (SN) is the link between an equipment and every part assembled into it. Stock is no longer interchangeable: 100 components in stock are useless to a WO if none of them carry the right SN.


❗Coverage rule for MTO. A Work Order is Covered only if all parts carrying the same serial number as the equipment are available. Generic stock of the same part reference does not count.


8. How past events are handled

Events whose planned date is already in the past are still part of the projection, but they follow specific rules.


💡Past-due supply is cleaned up before the projection runs. Rather than replaying overdue events where they sit, Pelico preprocesses them first: events too far past are excluded, and the rest are pulled to today. The projection then runs on that tidied baseline. This is why you may see three date layers on the same event: Planned (the raw date from your ERP, never altered), Adjusted (the cleaned-up starting point), and Projected (the forward-looking result).

Situation

Rule

Past PO / PR / ASN

Supply that should already have arrived is not taken at face value. Events beyond the tolerance window are excluded from the projection. The rest are shifted to today rather than counted at their original date.

Past WO / STO that is Covered or Conditionally covered

Consumed stock is decremented and the stock of the part produced is incremented.

Blocked WO / STO (past or future)

The order stays at its currently planned date. Component stock is decremented, and the stock of the part produced is not incremented. This is a deliberate choice: an order with no supply solution is not assumed to succeed.


💡Why blocked orders do not produce here. Not counting the output of a blocked order is a deliberate algorithm choice, not a gap. It answers a specific question : what happens if nothing gets fixed ? Production Control's Conditional projection (realistic) row follows the same rule. Its Stock level (optimistic) row counts this output anyway, as a best case. See Pelico's Algorithms.

One consequence follows directly: current stock is not today's physical stock. The projection replays every event in its originally planned order, including orders that were planned in the past and never rescheduled. The value shown for today can differ from what is physically on your shelves. Overdue, un-rescheduled orders are the usual explanation.


Assumptions and limitations

Keep these in mind when reading a projection.

  • Every planned event is assumed to happen at its planned date and quantity, except where the past-event rules above apply.

  • Pelico does not reschedule your orders. The projection shows what will happen if nothing changes. Dates such as the next enablement date are recommendations, not automatic actions.

  • Unconfirmed demand and supply are included (PR, SF). They make the picture complete but also more volatile.

  • Accuracy depends on your data. BoM correctness, planned dates, open-order status and stock accuracy in the source system all propagate directly into the result.


Glossary

Code

Term

Definition

ASN

Advance Ship Notice

Notification of an incoming delivery, linked to a PO. Increments stock.

BoM

Bill of Materials

The list of components and quantities required to produce one unit of a part.

CO

Customer Order

Firm customer demand. Decrements equipment stock.

MTO

Make-to-Order

Production mode where specific serialised parts are reserved for a specific equipment.

PO

Purchase Order

Confirmed supplier order. Increments component stock.

PR

Purchase Request

Unconfirmed purchase demand. Same projection impact as a PO.

SE

Sub-Equipment / Sub-Assembly

Intermediary part, both produced and consumed internally.

SF

Sales Forecast

Anticipated customer demand. Same projection impact as a CO.

SN

Serial Number

Identifier linking an equipment to the specific parts assembled into it.

SO

Service Order

Maintenance or repair activity. Decrements component stock.

STO

Stock Transfer Order

Movement of stock between locations or sites.

WO

Work Order

Production order. Consumes components, produces an equipment or sub-assembly.

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