Inventory and Reorder Planning

Industrial abrasive inventories contain many forms, sizes, interfaces, grades and constructions. Two products that look similar may not be interchangeable, while one product code may serve several work areas with different demand patterns. Good planning begins with controlled identity and reliable movement records, then applies demand, lead-time and risk logic appropriate to each item.

This chapter provides a practical customer-facing method. It does not assign MKTECH-specific stock levels, reorder points, service targets, shelf life, storage conditions, order quantities or performance guarantees.

Chapter objectives

After this chapter, the reader should be able to:

• maintain a controlled abrasive item master;
• distinguish physical, available, committed, quarantined and on-order quantities;
• clean issue, return and adjustment history before forecasting demand;
• measure replenishment lead time and its variability;
• separate cycle stock from safety stock;
• calculate a reorder point using approved local inputs;
• choose reorder-point, min/max or periodic-review logic;
• segment inventory by criticality, value and supply risk;
• control dates, condition, rotation, traceability and obsolete stock;
• investigate stock-record differences; and
• manage stockouts without bypassing product approval.

The objective is not maximum stock or minimum stock. It is reliable availability of the correct approved product in usable condition at a controlled total cost.

Balance five questions:

• What production or maintenance activity does the item support?
• What happens if it is unavailable?
• How predictable are demand and replenishment?
• How long can the product remain fit for use under its specified conditions?
• What cash, space, handling and obsolescence exposure does stock create?

ISO 55001:2024 frames asset decisions around performance, risk and expenditure. Apply the same disciplined balance to abrasive inventory without treating consumables as permanent assets. [S337]

One owner should coordinate parameter changes so demand, ordering and store records do not drift apart.

Every stocked identity needs a unique, understandable record.

Include, as applicable:

• internal item code and controlled description;
• manufacturer and product name/code;
• abrasive family and physical form;
• dimensions, bore, thread, shank or attachment;
• grade or grading-system designation;
• pack and base unit of measure;
• approved applications or specification reference;
• storage, date or condition-control fields;
• approved supplier and replenishment route;
• status—active, restricted, superseded or obsolete; and
• alternative-product relationship where formally approved.

Do not merge two products merely because their common description is similar. Keep P-grade, F-grade, superabrasive and proprietary designations within their correct systems. [S342; S346; S347; S348; S349]

Abrasives may be bought by carton, box, roll, belt, disc, wheel, sheet, kilogram or piece and issued in another unit. Define conversion factors explicitly and control changes in pack size.

A wrong pack conversion can create a false surplus or stockout even when every physical count is correct.

Use clear definitions:

• Physical quantity: material present at recorded locations.
• Available quantity: released material that can be issued.
• Committed quantity: available material reserved for known work.
• Quarantined quantity: material not permitted for normal issue.
• On-order quantity: confirmed replenishment not yet received and released.
• Net available position: usable supply after commitments, considering only valid open orders under the organisation's planning rule.

Never count damaged, expired where applicable, unidentified or quarantined product as available.

ASCM describes inventory management as tracking stock movement while balancing supply and demand. [S361] For abrasive planning, use actual issue and return records rather than purchase history alone.

Clean the history for:

• duplicate or delayed transactions;
• pack/unit conversion errors;
• returns posted as new receipts;
• transfers between locations counted as consumption;
• one-time shutdown, project or trial demand;
• stock adjustments masking unrecorded issues;
• product-code changes or supersession; and
• abnormal demand caused by process problems.

Separate recurring, intermittent, seasonal, project and emergency demand. A simple average can be misleading when demand contains long zero periods or large planned shutdown requirements.

Lead time should reflect the complete replenishment route, not only the supplier's quoted production time.

Measure relevant components:

• internal request and approval;
• purchase-order processing;
• supplier confirmation and manufacture/picking;
• transport and customs where applicable;
• receiving, inspection and release; and
• movement to the usable store location.

Record actual elapsed times and reasons for exceptional delays. Use a planning lead time that reflects the controlled process and known variability rather than an optimistic single quotation.

Cycle stock supports expected demand between replenishments. Safety stock protects against uncertainty such as demand variation, forecast error or lead-time variation.

ASCM describes safety stock as inventory carried to reduce stockout exposure arising from uncertainty and notes that policies can differ by strategic importance or other relevant groupings. [S362]

Do not use safety stock to hide:

• inaccurate records;
• late purchasing action;
• uncontrolled consumption;
• unreliable suppliers without improvement action;
• obsolete specifications; or
• recurring process waste.

More buffer may reduce stockout frequency but increases cash, space, condition and obsolescence exposure.

Use the general relationship:

Reorder point = expected demand during replenishment lead time + safety stock

For a continuous-review item, trigger replenishment when the defined inventory position reaches or falls below the reorder point. The inventory-position definition should account consistently for available stock, commitments, open orders and backorders where applicable.

Inputs must come from current records and the organisation's approved service/risk policy. Do not insert a universal service level, statistical factor or number of days of cover.

The same method need not apply to every item. Use the simplest method that reliably controls the actual demand and supply pattern.

Order quantity should consider expected demand, target position, pack size, minimum order where applicable, storage capacity, product condition, cash exposure and transport economics.

Do not increase quantity only to obtain a lower unit price without checking the total exposure. A price saving can be lost through damage, ageing, changed demand or specification obsolescence.

Evaluate at least:

• consumption value;
• production, maintenance or safety consequence of stockout;
• replenishment time and variability;
• availability of an already approved alternative;
• product condition or date sensitivity;
• demand predictability; and
• supplier or logistics concentration.

ABC value analysis alone is insufficient. A low-value wheel or belt can stop a critical maintenance job or production line.

Store abrasives by product family and manufacturer guidance. Protect them from moisture, temperature extremes, deformation, impact, contamination and unauthorised mixing as applicable. Manufacturer and FEPA guidance support careful receipt, suitable support, dry controlled storage, original packaging and stock rotation. [S338; S339; S340; S341]

Use FIFO where receipt sequence governs. Use FEFO where a controlled use-by, expiry or shelf-life date makes earliest expiry the correct issue priority.

For exact storage conditions, shelf life, date interpretation or packaging requirements, Refer to the product label, Technical Data Sheet, or MKTECH representative.

GS1's Global Traceability Standard distinguishes class-, batch/lot- and instance-level identification and links traceable objects with receipt, shipment, location and status events. [S363]

Choose a traceability level proportionate to product and application risk. Record:

• item identity;
• batch/lot, date or serial information where applicable;
• receipt source and date;
• storage location and status;
• quantity movements; and
• affected destination where needed for controlled recall or investigation.

Do not mix approved, evaluation, returned, quarantined or rejected material in one unlabeled location.

Use cycle counting or periodic physical inventory according to item criticality and record risk. Count by controlled item, unit, location and status.

When a difference occurs:

1. secure the affected identity and location;
2. recount independently where appropriate;
3. check recent receipts, issues, returns, transfers and conversions;
4. examine mixed stock, wrong locations and unposted transactions;
5. correct the record through authorised adjustment; and
6. address the cause if the difference can recur.

An adjustment restores the balance; it does not by itself correct the process.

Review stock with no recent demand, excess cover, superseded identity, damaged packaging or approaching controlled date limits.

Classify it as active slow-moving, project-reserved, excess, restricted, obsolete or pending technical disposition. Before transfer to another application, confirm that the product is approved and suitable for that application. Do not relabel or use obsolete stock merely to avoid a write-off.

Urgency does not validate a similar-looking product, grit number or mounting arrangement.

ISO 22301:2019 provides a business-continuity management framework for preparing for, responding to and recovering from disruption. [S364]

For critical abrasives, consider:

• alternate approved suppliers or products;
• supplier and logistics concentration;
• early-warning and escalation contacts;
• protected stock for defined critical work;
• planned shutdown and seasonal demand;
• recovery priorities; and
• controlled reversion after emergency arrangements.

Contingency stock is not a substitute for supplier improvement, accurate records or approved alternatives.

Review parameters when:

• demand level or pattern changes;
• lead time or supplier route changes;
• stockouts, expedites or excess stock recur;
• record accuracy deteriorates;
• pack size or unit conversion changes;
• a product is approved, superseded or withdrawn;
• shelf-life or storage information changes; or
• a new process, machine or contract changes criticality.

Keep the reason, approver, effective date and previous value so planning changes remain auditable.

Inventory and reorder checklist

Before releasing or revising a replenishment policy, confirm that:

• the item identity, unit and approval status are controlled;
• physical, available, committed, quarantined and on-order quantities are distinct;
• demand history excludes transfers, errors and exceptional events appropriately;
• complete replenishment lead time and variability are understood;
• cycle stock and safety stock serve different purposes;
• the reorder formula uses current approved inputs;
• order method and quantity suit the demand pattern and pack constraints;
• criticality, value, condition and supply risk are considered together;
• storage, rotation, dates and traceability protect product fitness;
• count differences are investigated and causes corrected;
• slow-moving and obsolete stock have controlled status;
• stockout routes preserve product approval; and
• parameters are reviewed after material change or recurring exception.

Concise safety reminders

• Never issue quarantined, damaged, unidentified or unapproved abrasive stock.
• Keep product identity and condition visible through receipt, storage, transfer and issue.
• Do not use a stockout to justify uncontrolled substitution.
• Preserve guards, mounting systems, accessories and machine/product compatibility.
• Apply the storage and handling instructions for the actual product family.
• Refer to the product label, Technical Data Sheet, or MKTECH representative.

This section appears on the following page of the printed handbook (page 552), outside this chapter extract.