The number of sales per year, below which an item is considered a slow moving item. Slow moving items will never receive any safety stock.

When using these parameters, it is important to determine whether the business has a bias towards over or under forecasting, suppliers being late or early, and whether accumulating excess stock or stocking out will be more detrimental to them.

If excess stock is a concern, set this parameter to a higher value than if stockouts were the main concern.

Refer to the Forecast risk and offset and Supply risk and offset configuration parameters.

We are familiar with how forecast risk, forecast offset, supply risk and supply offset are calculated and how it affects our safety stock.

Suppose I have a slow moving item that sells 1 or 2 units a year. In this situation, carrying safety stock might not be appropriate as we simply can’t predict when the next sale of 1 unit will occur. Instead, a fixed minimum stock level is probably a more suitable solution.

Using this parameter, you can specify the amount of units to be sold a year to be eligible for safety stock.

Question: Can we not re-classify slow movers to be non-stocked if we are not afraid of stocking out?

Answer: Of course. But before you do, setting this parameter will allow you to cease accumulation of safety stock for slow movers, thus making it easier to get rid of the stock on hand for these items once you re-classify them to non-stocked.