Quick Summary: Understand the distinction between Stocked, Non-stocked, Obsolete, and Zero Policy items to align classification and prioritization with business goals.
Why Stocking Indicators Matter
A stocking indicator is the single most consequential classification in the app. It defines whether, and how, the system will reorder an item, directly shaping service levels, working capital, and operational efficiency.
Set it right and you avoid stockouts on essentials; set it wrong and you tie up cash in slow movers. Mastering how indicators are set, prioritized, and managed keeps replenishment behavior aligned with your business goals.
The Four Stocking Indicators
The app uses four primary stocking indicators to define an item's replenishment strategy.
Stocked Item
These are items you intend to keep readily available on the shelf to fulfill customer orders immediately. They require a forecast, replenishment cycle, target fill rate, and safety stock to ensure sufficient stock on hand. A common example would be an everyday item like dishwashing soap in a supermarket.
Non-stocked Item
These items are not held in inventory and are only ordered when there is a firm demand, such as a customer order. This strategy is often used for expensive or unique products where customers are willing to wait, like a custom-ordered glass table. Because they aren't kept on hand, they don't have a forecast, replenishment cycle, target fill rate, or safety stock.
Obsolete Item
These items are never replenished, regardless of any remaining demand or stock on hand. This indicator is used for discontinued products, such as an outdated mobile phone. The system will never generate a recommended order for an obsolete item. Obsolete items also don't need a forecast, replenishment cycle, target fill rate, or safety stock.
Zero-Policy Item
This is a special variation of a non-stocked item, most often used for make-to-order finished goods. Like non-stocked items, they are not held in inventory. The key difference is that a Zero Policy item allows its sales forecast to flow down to its underlying raw materials and components, driving purchasing recommendations for those components without recommending that you stock the finished good itself.
Examples of Stocking Indicators
Example: I have a customer order for 20,000 units, but no stock and no recommended order. Why?
Answer: Check your item's stocking indicator. It's likely set to Obsolete, so the app will never generate a recommended order for it.
Example: I have a forecast for 20,000 units, but no stock and no recommended order. Why?
Answer: Your item is likely set to Obsolete or Non-stocked. Obsolete items may still have a forecast to track how quickly remaining stock will sell out if naturally sold through, but no new orders are generated. For Non-stocked items, orders are only generated for firm demand, not forecasts.
Manually vs. Auto-Classified Items Explained
Stocking Indicator Priority Rules Explained
How To: Manually Adjust Stocking Indicators (Inquiry Screen)
How To: Manually Change Regional Classification
⚠️ Watchouts
No Recommended Order? Check the Indicator: If you have a customer order or a forecast for an item but see no recommended order, check its stocking indicator. An Obsolete item will never generate a recommended order. A Non-stocked item will only generate a recommendation for firm demand, not for a forecast.
Non-downloaded items may become Obsolete if your config requires it. If an item stops downloading and your configuration treats missing items as Obsolete, the app will move it to Obsolete automatically.
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