Introduction

Inventory management isn’t just about tracking what’s in stock today—it’s about anticipating what you’ll need tomorrow. iVendNext’s Projected Quantity feature provides a dynamic forecast of future inventory levels by accounting for pending orders, production plans, and customer commitments.

This guide explains how Projected Quantity works, why it’s essential for inventory planning, and how to use it to prevent stockouts and reduce excess inventory.

What is Projected Quantity?

Projected Quantity is a real-time calculation of your expected inventory levels, considering:

• Current stock (Actual Qty)

• Planned production (Work Orders)

• Pending purchases (Purchase Orders)

• Customer reservations (Sales Orders)

Key Benefit: Moves you from reactive stock management to proactive supply planning.

The Projected Quantity Formula

The system calculates future inventory using:

Projected Qty = Actual Qty  

               + Planned Qty (Work Orders)  

               + Requested Qty (Material Requests)  

               + Ordered Qty (Purchase Orders)  

               - Reserved Qty (Sales Orders)  

               - Reserved Qty for Production  

               - Reserved Qty for Subcontracting  

Breaking Down the Components

1. Actual Quantity (On-Hand Stock)

• The physical inventory currently in your warehouse.

• Example: 500 units in Warehouse A.

2. Planned Quantity (Production Pipeline)

• Items scheduled for manufacturing via Work Orders but not yet produced.

• Example: 200 units to be manufactured next week.

3. Requested Quantity (Pending Approval)

• Items requested internally via Material Requests but not yet converted to Purchase Orders.

• Example: 50 units requested by the Production team.

4. Ordered Quantity (Inbound Stock)

• Items on Purchase Orders but not yet received from suppliers.

• Example: 300 units expected from Supplier X in 5 days.

5. Reserved Quantity (Customer Demand)

• Items committed to Sales Orders but not yet delivered.

• Example: 150 units reserved for Customer Y’s order.

6. Reserved for Production/Subcontracting

• Raw materials allocated to:

• Production (Work Orders)

• Subcontracted jobs (Supplier-manufactured goods)

Why Projected Quantity Matters

1. Prevent Stockouts

• Identifies future shortages before they happen.

• Triggers replenishment alerts at safety stock levels.

2. Optimize Purchasing

• Distinguishes between:

• Real shortages (Need to order now)

• Temporary gaps (Covered by inbound POs)

3. Improve Production Scheduling

• Ensures raw materials are available when needed.

• Prevents production delays from material shortages.

4. Reduce Excess Inventory

• Avoids over-ordering by showing true future needs.

• Lowers carrying costs.

How to Use Projected Quantity Reports

1. Accessing the Report

Navigation Path:
Stock > Main Report > Stock Projected Quantity

2. Key Filters

• Item/Warehouse: Focus on specific products/locations.

• Date Range: Forecast for upcoming weeks/months.

3. Actionable Insights

• Red Highlights: Potential stockouts (Projected Qty < 0).

• Green Values: Healthy inventory positions.

Real-World Applications

Case 1: Retail Business

• Challenge: Holiday season demand spikes.

• Solution: Use Projected Quantity to:

1. Identify top-selling items needing stock boosts.

2. Schedule supplier orders 8 weeks in advance.

Case 2: Manufacturer

• Challenge: Just-in-time raw material procurement.

• Solution: Monitor Reserved Qty for Production to:

1. Align material deliveries with Work Order dates.

2. Avoid production line stoppages.

Pro Tips

🔹 Set Reorder Points: Automate alerts when Projected Qty nears safety stock.
🔹 Compare Trends: Track weekly projections to identify demand patterns.
🔹 Supplier Collaboration: Share inbound PO data for better lead time accuracy.

Conclusion

Projected Quantity transforms inventory management from guesswork to data-driven forecasting. 

By understanding:

✅ How it’s calculated
✅ What each component represents
✅ How to act on the insights

You can achieve:

• Fewer stock emergencies

• Lower inventory costs

• More reliable customer service