This module enhances inventory management by introducing service-level–based, stochastic control using a continuous review replenishment system. Instead of relying solely on fixed min/max stock levels, the module estimates your typical (mean) and variable (variance) daily demand from historical data and factors in lead time. These calculations generate a statistically sound safety stock, which is included in your reorder threshold (the “min”). The “max” is set so your inventory will cover expected demand during the entire replenishment cycle.
Now, you can set replenishment rules (orderpoints) based on the Cycle Service Level (CSL), which reflects the probability of meeting all demand during a replenishment cycle without running out of stock. This provides a practical alternative to manually setting minimum and maximum stock thresholds.
With CSL enabled, safety stock is automatically calculated using your historical daily sales data (both average and standard deviation), gathered over a period you define, plus the orderpoint’s lead time. The system then keeps your reordering rule’s min and max levels up-to-date.
Prefer manual control? You can always switch back to the “Manual” mode to specify min and max directly.
The backbone of this approach is the Cycle Service Level (CSL), a widely used supply chain metric:
This system assumes demand is random (not fixed), so it uses statistical methods:
Because demand can fluctuate during the lead time, safety stock acts as a buffer to reduce the risk of running out of stock.
Safety stock formula:
safety_stock = σ_L × z × g
Where:
Three zones are needed to define how min and max are derived:
Where:
From these three zones, the min and max quantities are derived as follows:
Why does it work?
This makes inventory management both more data-driven and easier to maintain.
Table of contents
To efficiently use this module, some configuration must be done in Odoo.
In the General Settings >Inventory, under Advanced Scheduling, you have the possibility to set the Demand History Days.
It defines the rolling window for the historical analysis to compute the average daily demand and resulting safety stock. Defaults to 365. Company-specific.
They define the target probability of meeting all demand during a replenishment cycle without running out of stock. The module comes with predefined values for Cycle Service Levels and their z-scores, but you can create more according to your needs.
Set up your Replenishment Rules (Orderpoints) to use the Cycle Service Level method, and play with the following variables to fit your needs. The module will recompute daily the Min, Max and thus the To order quantities based on the historical demand data and the parameters you set.
Safety Stock Method
Cycle Service Level
Defines the target probability of meeting all demand during a replenishment cycle without running out of stock. Typical values range from 90% to 99%. A higher target increases safety stock to reduce the risk of stockouts; a lower target reduces inventory at the cost of more frequent shortages.
Cycle Days
The desired number of days between orders. Used to size the gap between the min and max quantities, to cover the expected demand during the desired reordering cycle.
Growth Factor
An optional multiplier to account for expected growth in demand. Will be applied to the safety stock and the resulting min and max quantities.
This module enhances the transparency of inventory management by displaying the full calculation path for minimum and maximum stock levels. By providing visibility into how safety stock formulas are derived directly within the user interface, it builds user trust and simplifies the verification of automated procurement rules.
When clicking on the ℹ️ icon, you are redirected to all the necessary info & configuration needed to use this OCA module:
Note: Some fields are only shown in “Developer Mode”.
All the statistics and safety stock are non-stored fields computed on-the-fly, while min & max quantities are computed either:
Manually by clicking on the replenishment’s 🔄 button
Automatically by a daily scheduled action
It’s possible to filter on the safety stock method & on the cycle service level in the Orderpoint tree view:
Bugs are tracked on GitHub Issues. In case of trouble, please check there if your issue has already been reported. If you spotted it first, help us to smash it by providing a detailed and welcomed feedback.
Do not contact contributors directly about support or help with technical issues.
This module is maintained by the OCA.
OCA, or the Odoo Community Association, is a nonprofit organization whose mission is to support the collaborative development of Odoo features and promote its widespread use.
Current maintainer:
This module is part of the OCA/stock-logistics-orderpoint project on GitHub.
You are welcome to contribute. To learn how please visit https://odoo-community.org/page/Contribute.