Inventory Management
The Inventory Management domain tests inventory organizations, subinventories, locators, item assignment, transactions, controls, counting, and costing. Questions ask what a transaction changes and which setup enables it.
Structure and controls
- Inventory organization → subinventory → locator. Locators are optional unless locator control is enabled.
- Item attributes such as lot control, serial control, shelf life, and dual unit of measure drive transaction behavior.
- Reservations earmark supply for demand; they do not move or issue inventory.
Transactions
- Receipts, issues, subinventory transfers, miscellaneous transactions, and transfer orders are the core movements.
- A subinventory transfer within one inventory organization does not change the inventory organization or cost organization.
- Min-max planning suggests replenishment to bring a subinventory back to its maximum; reorder point planning uses safety stock.
Counting
Cycle counts and physical inventories generate count sequences and adjustments. Approved adjustments post to the cost processor for valuation.
Worked example: Item A has on-hand 40 in subinventory Stores, minimum 20, maximum 50. A user issues 25 units to production. On-hand becomes 15, below the minimum. Min-max planning suggests 35 units to reach the maximum of 50. The reasoning is: min-max compares available on-hand to the minimum, then sizes the suggestion as maximum minus current on-hand. If the item were not assigned to the inventory organization, the issue itself would fail before planning could see it.
Traps: assuming a subinventory transfer changes cost; forgetting item-organization assignment; confusing reservation with allocation; assuming negative inventory is always allowed; mixing min-max and reorder-point logic.