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Basics of Inventory Management

Stock tracking, optimize levels with real-time updates, and understand safety stock level for efficient production and purchasing decisions.

Dayvid Lorbiecke avatar
Written by Dayvid Lorbiecke
Updated this week

Efficient inventory management is crucial for maintaining optimal stock levels, reducing costs, and ensuring timely order fulfillment. Katana's real-time inventory tracking system automates stock movements based on purchasing, manufacturing, and sales activities, eliminating the need for manual updates.

Tip for costing principles

Check out understanding moving average cost to better comprehend costing principles in Katana.


Understanding stock movements

In Katana, stock levels are dynamically updated through the following activities:


Navigating the Inventory tab

Screenshot showing where to find the Inventory tab

Access the Inventory tab from the Stock screen to view detailed information on your products and materials at the variant level. Key columns include:

  • In stock: Current quantity physically available in your warehouse.

  • Committed: Quantity allocated to open SOs, MOs, or OPOs.

  • Expected: Quantity anticipated from open POs, MOs, or OPOs.

  • Safety stock level: Minimum desired inventory level to prevent stockouts.

  • Calculated stock: Optimal stock level computed as:

    In Stock - Committed + Expected - Safety Stock Level

Monitoring the Calculated stock helps in making informed manufacturing and purchasing decisions.


Setting safety stock levels

Safety stock acts as a buffer against uncertainties in demand and supply. In Katana:

  • Make-to-Stock (MTS): Set safety stock levels for products to ensure availability.

  • Make-to-Order (MTO): Typically, set product safety stock levels to zero, as items are produced upon order.

  • Materials: Regardless of MTS or MTO, it's advisable to maintain safety stock for materials to avoid production delays.

Note: Katana does not automatically calculate safety stock levels; they must be set manually for each product and material variant.


Accessing detailed inventory information

Clicking on the quantities in the In stock, Committed, or Expected columns opens a detailed view showing:

  • Historical stock movements over the past 365 days.

  • Associated documents like SOs, POs, MOs, OPOs, and stock adjustments.

  • Changes in average cost and quantity over time.

This feature aids in tracking inventory trends and making data-driven decisions.


Optimizing inventory levels

Gif showing how you can click on In stock, Committed, and Expected quantities to see additional info in the Inventoy intel popup

To maintain optimal inventory:

  • Regularly monitor the Calculated stock column to identify items needing replenishment.

  • Avoid excessive surplus to reduce holding costs.

  • Utilize the Sort function to prioritize items with the lowest calculated stock.

By proactively managing inventory levels, you can ensure product availability and efficient operations.


Your feedback is invaluable. Let us know your thoughts on this article or anything in Katana you'd like to see improved: [email protected]

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