# Inventory Planning Parameter Governance Checklist > Source: https://netray.co/tools/inventory-planning-parameter-governance-checklist > Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems. > Section: Free Tools ## Short answer A checklist for keeping safety stock, reorder point, lot size and lead time parameters controlled, reviewed and traceable. ## Category supply-chain ## Audience - Supply chain manager - Materials planner - ERP administrator ## Tool **Kind:** checklist **Scoring Note:** Count the items you can answer yes to. Critical items are the ones that cause the largest real problems when missing; fix those before anything else. **Groups:** #### Ownership and policy **Items:** **Text:** A written policy states how safety stock, reorder point and lot size are set **Critical:** true **Text:** Each parameter has a named owner by item group or planner **Critical:** true Service level targets are defined by ABC or demand class The policy states who may override a calculated value and why The policy is reviewed at least once a year New planners are trained on the policy within their first month #### Data quality **Items:** **Text:** Lead times are compared with actual receipt history at least twice a year **Critical:** true Items with zero or blank safety stock are reviewed on purpose, not by omission **Text:** Units of measure for purchase, stock and issue are consistent for each item **Critical:** true Inactive and obsolete items are flagged and excluded from planning Minimum and maximum lot sizes reflect supplier terms that are still valid Rounding values match packaging quantities Demand history used for calculations excludes one-off orders and returns #### Calculation and review **Items:** **Text:** Safety stock is calculated from demand variability and lead time variability, not a flat percentage **Critical:** true Fast movers are reviewed monthly and slow movers quarterly or less often Intermittent and lumpy demand items use a method suited to them A report lists items below safety stock and items above a maximum coverage Parameter changes of more than a set percentage need a second approval Seasonal items have separate parameters or time-phased settings Supplier performance feeds back into lead time and safety stock decisions #### Change control and audit **Items:** **Text:** Every parameter change is logged with user, date, old and new value **Critical:** true **Text:** Mass changes use a tested load template with a review step **Critical:** true A rollback copy of the previous values is kept before mass changes Access to change planning data is limited to planners and master data staff Changes that affect inventory value are shared with finance Quarterly sampling checks that changed values match the approved request #### Performance feedback **Items:** Stockouts are traced back to the parameter or process that caused them Excess stock is traced back to the parameter or process that caused it KPIs include inventory turns, fill rate and days of supply by class Results are reviewed in a regular planning or S and OP meeting ## Content **Intro:** Most inventory problems trace back to parameters that nobody owns: a lead time set years ago, a safety stock copied from another plant, a mass update with no approval. This checklist covers ownership, data quality, review and change control. **Sections:** #### How to use the checklist **Body:** Work through each group with the planning lead and the ERP administrator. Tick the items that are true today, not those that are planned. Critical items are marked because their absence tends to produce visible failures such as stockouts, wrong order quantities or unexplained changes. Export the result as the baseline for an improvement plan. **Bullets:** - Do it with two people to avoid optimistic answers - Check evidence, such as a change log, for at least three items - Repeat every six months and compare #### Why parameters need governance **Body:** MRP and reorder point logic execute whatever the master data says. If lead time is understated by a week, orders are placed late every time, and the planner works around it with expedites. If a mass update doubles safety stock for a class, inventory value rises and nobody sees why until the quarter close. #### Evidence to collect **Body:** For lead time, compare the planned delivery time with the distribution of actual receipt days from purchase history. For safety stock, compare the value with calculated need at the target service level. For change control, pull a change log for a month and trace two changes back to approval. These checks take little time and show whether the process works. #### Common mistakes **Body:** Treating governance as a one-time cleanup, giving everyone access to edit planning fields, and adjusting values without recording the reason. Another is optimizing each parameter alone: raising safety stock to hide a bad lead time only masks the cause and ties up cash. **Cta:** Netray can build read-only checks that scan your item master for the issues in this checklist and list the exceptions for planner review. **Faq:** #### How often should planning parameters be reviewed? **Answer:** Fast moving and critical items monthly, the rest quarterly or twice a year. Lead times need a review at least every six months or whenever a supplier changes, since they feed safety stock directly. #### Who should own safety stock values? **Answer:** Usually the planner for the item group, under a policy set by the supply chain manager. Finance should be informed of large changes because they alter inventory value and the working capital position. #### Do I need approvals for every change? **Answer:** No. Use a threshold, for example any change above a set percentage or any mass update, to require a second approval. Small corrections by the planner can follow the normal log. #### Is this specific to one ERP? **Answer:** No. The checks apply to any ERP with planning parameters, including SAP, Oracle, Infor, Epicor, Dynamics and NetSuite. The place where changes are logged differs by system. ## Search terms inventory parameter governance, safety stock review process, planning parameter change control, mrp master data governance, inventory policy checklist, lead time review checklist, planning parameter audit, material master planning data review --- Talk to an engineer: https://netray.co/contact?intent=erp_ai | Machine catalog: https://netray.co/agent/catalog.json