Configure per-SKU parameters

Configure each SKU's inventory parameters: holding cost, shortage cost, lead time, on-hand and in-transit inventory, unit price, and forecast adjustment.

Before you start

• You need access to the Inventory module.
• Have your company's holding and shortage cost values ready (usually provided by the finance team).
• For lead time, use the average agreed with the supplier in calendar days.

Steps

1. Open the parameters grid

Go to Inventory → Parameters in the side menu.

A grid appears with one row per active SKU. Columns correspond to the configurable parameters.

2. Edit a value

1. Click the cell you want to edit.
2. Type the new value.
3. Press Enter or click outside the cell.

The change saves automatically — there is no separate Save button.

Bulk editing

Use Tab to advance between cells in the same row and edit several parameters for the SKU without going back to the mouse.

3. Verify the change

The cell shows the updated value immediately. If the system detects a value outside the expected range (for example, a negative lead time), it displays a red warning and discards the change.

Available parameters

Parameter	Description
Holding cost	Annual cost of keeping one unit in inventory (includes capital, storage, obsolescence). Same currency unit as the price.
Shortage cost	Estimated penalty per unit that is missing when there is demand (lost sale, expediting fee, urgency premium).
Lead time	Calendar days between placing an order and receiving the goods.
On-hand inventory	Units in the warehouse at the time of calculation.
In-transit inventory	Units already ordered but not yet received.
Unit price	Sale price or reference cost of the SKU. Used in the holding cost calculation when not parametrized directly.
Forecast adjustment (%)	Manual correction percentage over the model-generated forecast. Useful when external information is not captured by the model (launches, promotions, customer closures).

For detailed definitions and recommended ranges, see Inventory parameters.

Expected result

After saving parameters, the policy simulator and the safety stock (SS), reorder point (ROP) and replenishment quantity (Q) calculations update on the next optimization cycle.

When does the system recalculate?

Parameter changes take effect on the next scheduled optimization cycle, not instantly. To see the immediate effect, use the SKU simulator.