The Stock holding KPI shows your Actual stock value versus the Model stock value. Typically the model is less than the actual because:
The actual stock value is computed as the current level of stock on hand, valued at cost
The model stock value is the optimal stock holding and assumes that there is no excess stock and that every single item in every location is in perfect balance
Your goal: to bring the Actual stock value as close to the Model stock value as possible while increasing or maintaining the fill rate. This can be done through inventory balancing; the process of reducing excess inventory and surplus orders while also placing the orders required to fix your stock outs or potential stock outs.
The below information in the stock holding panel helps you to easily find the top 5 items with the highest contribution to the Actual stock value.
Your goal: To review the items in the list and find ways to potentially reduce their Actual stock value without putting it at risk of stocking out.
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