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<ManualTopic ID="/baanerp/ff/warehousing/warehousing_ff_ina" xml:lang="en">
   <Header>
      <Title> Inventory Analysis</Title>
      <Keyword type="header" order="d1e441831">
         <Level1>Functions and features</Level1>
         <Level2>Inventory Analysis</Level2>
      </Keyword>
      <Keyword type="header" order="d1e441837">
         <Level1>Inventory Analysis</Level1>
         <Level2>functions and features</Level2>
      </Keyword>
   </Header>
   <ConceptSection>
      <Paragraph>You can use <GUIRef href="/baanerp/wh/ina" role="module">Inventory Analysis</GUIRef> to perform these
		analyses:</Paragraph>
      <List>
         <ListItem>
            <Link href="/baanerp/wh/glossary/glossary#000306" role="glossary">ABC analysis</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/glossary/glossary#000380" role="glossary">slow-moving analysis</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/wh/glossary/glossary#000001" role="glossary">inventory valuation method</Link>
         </ListItem>
      </List>
   </ConceptSection>
   <GeneralSection>
      <List>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000645" role="manual">Inventory variance posting</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph>The difference
			 between the valuation amount that is recorded after the receipt of goods and
			 the updated value for that particular receipt. Processing of inventory
			 variances results in financial transactions that clear the interim variance
			 account, and if possible assign the variance to inventory.</Paragraph>
            <List>
               <ListIntro>An inventory variance can be created:</ListIntro>
               <ListItem>If the receipt price is changed after the receipt is
				confirmed</ListItem>
               <ListItem>If the invoice price differs from the receipt
				price</ListItem>
               <ListItem>If a production order is closed and the actual cost price
				differs from the estimated cost price</ListItem>
            </List>
         </ListItem>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000004" role="manual">Inventory valuation</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph>Inventory can be
			 valuated using different valuation methods in ERP Enterprise such as <Link href="/baanerp/wh/glossary/glossary#000319" role="glossary">Fixed transfer price (FTP)</Link>, <Link href="/baanerp/wh/glossary/glossary#000351" role="glossary">Moving-average unit cost (MAUC)</Link>. Valuation methods
			 result in a particular inventory value in the ledger. The value in the ledger
			 does not always represent the real value of the inventory.</Paragraph>
         </ListItem>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000347" role="manual">Moving Average Unit Cost (MAUC)</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph> 
               <Link href="/baanerp/wh/glossary/glossary#000351" role="glossary">Moving-average unit cost (MAUC)</Link> is an inventory
			 valuation method that is used for accounting purposes. The MAUC is the average
			 value for each unit of the current inventory. Inventory is valued against the
			 average receipt price. For each new receipt, the MAUC is updated. To calculate
			 the inventory value for an item, the MAUC inventory valuation method uses all
			 types of transactions. MAUC is the financial method of inventory
			 valuation.</Paragraph>
         </ListItem>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000002" role="manual">To perform an ABC analysis</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph>
               <Link href="/baanerp/wh/glossary/glossary#000306" role="glossary">ABC analysis</Link> is the logistical method of inventory valuation. ABC analysis categorizes the
			 items based on the level of priority and the quantity of their
			 usage.</Paragraph>
         </ListItem>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000003" role="manual">To perform a slow-moving analysis</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph>A <Link href="/baanerp/wh/glossary/glossary#000380" role="glossary">slow-moving analysis</Link> is another logistical method of inventory valuation.
			 slow-moving analysis calculates the turnover rates that are compared with the
			 slow-moving percentage. This calculation results in a classification of items
			 into ten categories in which the best category has the highest ratio of actual
			 issue/inventory on hand.</Paragraph>
         </ListItem>
         <ListItemHead>
            <Link href="/baanerp/wh/onlinemanual/000005" role="manual">To calculate demand forecast for each period</Link>
         </ListItemHead>
         <ListItem>
            <Paragraph>The level of demand that is expected in future periods. The
			 demand forecast is based on historical demand data and can be used to determine
			 the optimal safety stock and reorder point.</Paragraph>
            <Paragraph>The buffer inventory necessary to meet fluctuations in
			 demand and delivery lead time. In general, safety stock is a quantity of
			 inventory planned to be in inventory to protect against fluctuations in demand
			 or supply. In the context of master production scheduling, safety stock is the
			 additional inventory and capacity planned as protection against forecast errors
			 and short-term changes in the backlog.</Paragraph>
            <Paragraph>Calculation of demand forecast for each item and period
			 depends on the value of the Forecast Method field in the Item - Warehousing
			 (whwmd4100s000) session:</Paragraph>
            <List>
               <ListItem>Moving Average</ListItem>
               <ListItem>Exponential Smoothing</ListItem>
               <ListItem>Previous Year's Calculation</ListItem>
               <ListItem>Last Period's Demand</ListItem>
            </List>
         </ListItem>
      </List>
   </GeneralSection>
</ManualTopic>