Skip to main content

Supply Plan Metrics: How the Supply Plan Works?

This article helps you understand the logic behind all the calculations on the Supply Planning page

Amar Sujith avatar
Written by Amar Sujith
Updated over a week ago

Overview

The Supply Plan helps you understand what will happen to your inventory in the future and what actions you should take.


It combines three key ideas:

  • What do you expect to sell (your plan)?

  • What inventory is already coming (confirmed purchase orders)?

  • What should you order (recommendations)?

Everything is shown by time period (monthly or weekly), so you can quickly see:

  • Where are you safe?

  • Where are you at risk?

  • Where should you take action?


The Big Picture

For every product and warehouse, the Supply Plan answers four questions:

  1. How much do I plan to sell?

  2. How much of that can I realistically fulfill?

  3. What inventory is already coming?

  4. What should I order, and when?


Step 1: Understanding Planned Demand

What this means

Planned demand is simply how much you expect to sell in a given period.

We look at expected sales day by day, then roll them up into monthly or weekly totals.


Important detail: past sales are included

If you are already partway through a month:

  • Sales that already happened are added back into the plan

  • This ensures the month shows the full demand, not just what’s left

Why does this matter?

Without this, the current month would always look artificially low.


Step 2: Understanding Fulfillment Buckets (Very Important)

Not all planned sales are equal. Some are safe, some are risky, and some are already lost. To make this clear, we split planned demand into four categories based on inventory availability.


The 4 Categories Explained Simply

Category

What it means in plain English

Achievable

You can fulfill this with current stock, comfortably

Safety Stock

You can fulfill this, but only by dipping into your buffer

Orderable

You don’t have stock now, but you could still order in time

Unachievable

It’s too late — even ordering now won’t help

How this is determined

The system looks at:

  • How much stock do you have?

  • How fast are you selling?

  • Your supplier's lead time

  • Your safety stock buffer

Then it asks, day by day:

“Will we have stock available for this demand, without breaking our safety rules?”


Step 3: Period Summary (Monthly or Weekly View)

Once each day is classified, everything is summarized into a single row per period.


Example: One Month, One Product

For a given month, you might see:

  • Planned sales: 150 units

  • Achievable: 80 units

  • Using safety stock: 50 units

  • Orderable: 10 units

  • Unachievable: 10 units

This tells you immediately:

  • Most of the plan is feasible

  • Some of it is risky

  • Some demand may be missed without action


Step 4: Understanding Incoming Deliveries

What counts as an incoming delivery?

Incoming deliveries are only purchase orders that already exist:

  • They’ve been marked as Ordered in Prediko

  • They have a delivery date

  • They are expected to arrive in the future

Note:

Recommended orders are not included here.


Why does this separation matter?

We keep a strict separation between:

  • What is confirmed

  • What is only a recommendation

This prevents the plan from looking overly optimistic.


How do deliveries affect the plan?

When a delivery arrives:

  • Inventory goes up

  • Future risk may decrease

  • Stock coverage improves

This impact is reflected automatically in:

  • End-of-month stock

  • Days of stock remaining

  • Achievable vs risky demand


Step 5: Recommended Orders (What You Should Do)

What recommended orders represent?

Recommended orders answer the question:


“Based on what’s coming and what we plan to sell, what should I order — and when?”


There are two types:

  1. What should you order now?

  2. What you’ll likely need to order later?

These are grouped by month so you can plan purchasing in advance.


Final Supply Plan Row: How to read it?

For each product and period, the Supply Plan shows a single consolidated view.


Example Interpretation

  • Planned: 150 units

  • Achievable: 80 units

  • Safety stock: 50 units

  • Incoming deliveries: 100 units

  • Recommended order: 50 units

  • Days left at the end of the month: 25

This means:

  • You can meet most of the plan

  • You’re partially relying on safety stock

  • You already have inventory coming

  • You should still place a new order to stay healthy


Key Metrics Explained Simply

Metric

What does it tell you?

Planned Quantity

How much do you expect to sell

Achievable Plan

Sales you can make without stress

Safety Stock Plan

Sales that use your buffer

Orderable Plan

Sales you can still save by ordering

Unachievable Plan

Sales you’re likely to miss

Incoming Deliveries

Inventory already on the way

Recommended Orders

What you should order

Days Left

How long will the stock last

Stock Level

Inventory at the end of the period


An Important Principle

The Supply Plan never assumes you will place recommended orders. This is intentional.

If recommendations were treated as guaranteed:

  • Risk would disappear artificially

  • Every future month would look “perfect.”

  • Real inventory issues would be hidden

Instead, the Supply Plan:

  • Shows reality as it stands today

  • Highlights where action is needed

  • Let's you stay in control of decisions


To summarize in one sentence

The Supply Plan shows what you want to sell, what you can sell, what’s already coming, and what you should do next, without assuming perfect execution.

Did this answer your question?