Section 4 Receiving Volume Calculation

1. Fundamental Logic of Receiving Volume Calculation

Receiving volume is fundamentally considered equal to shipping volume over time. However, not all items arrive daily; rather, replenishment arrives in consolidated shipments based on inventory replenishment cycles (receiving cycle).

• Fluctuating Inventory: Calculated as Maximum Inventory minus Safety Inventory.
• Receiving Cycle: Calculated as "Maximum Inventory Days － Safety Inventory Days".
  • Example: If the cycle is 6 days, receiving occurs every 6 days, peaking inventory on arrival day.
• Receiving Item Count: Daily receiving item count is calculated as "Total Item Count ÷ Receiving Cycle".

2. Criteria for Determining Receiving Unit Formats

Based on per-item inbound volume, receiving formats are categorized into "Pallets (PL)", "Cases", or "Pieces".

3. Operational Differences Between Receiving and Shipping

In distribution center operations, understanding the following contrast is essential:

• Shipping: Outbound goods flow in "High Variety, Small Quantities" per destination.
• Receiving: Inbound goods arrive in "Specific Items, Large Quantities" per product.
• PCB Analysis Viewpoint: Understood through the physical flow of "Arriving in Pallets, Outbound in Cases or Pieces".

4. Calculation Example and Important Considerations

In the reference calculation example, daily inbound volume is derived as follows:

• Scale: Total 392 items (190 pallets ＋ 1,437 cases).
• Cubic Volume: 311 cubic meters.

【Note】

Because these calculated figures stem from raw conversions, practical application requires adjusting for "actual stacking density per pallet" and facility operational multipliers (such as designated inbound day schedules).

Subsection 1 Executing Receiving Volume Calculation

T810_All Case & Piece Data IQ is derived from overall shipping data averages.

Inventory fluctuates between maximum inventory and safety inventory.
Fluctuating Inventory ＝ Maximum Inventory － Safety Inventory.
When Fluctuating Inventory Days ＝ 6 days, receiving occurs on a 6-day cycle. Inventory reaches maximum on receiving day and drops to 0 fluctuating stock immediately before next receiving confirmation.
(Theoretically leaving only safety inventory on hand).

Receiving Volume ＝ Shipping Volume

Receiving Cycle ＝ Maximum Inventory Days － Safety Inventory Days

Receiving Item Count ＝ Item Count ÷ Receiving Cycle

Items with inbound volume of 0.5 PL or more arrive as pallet units.
Items under 0.5 PL arrive as case units.
Items of 0.5 cases or less arrive as piece units.

Ranks GPLI_A1, GPLI_A2, and GPLI_B arrive as PL units,
while GPLI_C and GPLI_D arrive as case units.

Receiving Volume Calculation Results and Daily Inbound Volume