Calculate Replenishment Parameters |
The Calculate Replenishment Parameters screen enables you to automatically calculate replenishment parameters for parts. If you manage parts inventory BY LOCATION, you can use this screen to calculate replenishment amounts instead of using the Economic Order Quantity (EOQ) calculations option on the System Mgmt -> End of Period screen, which only calculates amounts for all parts.
EOQ values are calculated using the formulae listed in the Setup Guide. MIN-MAX values are calculated based on the past 12 months of historical lead time and usage data. The calculation is performed for one location at a time.
To calculate replenishment requirements:
Part must have a status of STOCKED on the Stock Mgmt tab of the Data -> Parts Items -> Primary Information screen
Replenishment method must be set to either EOQ or MIN-MAX on the Replenishment tab of the Data -> Parts Items -> Location Information screen
Perform EOQ or MIN-MAX calculation must be set to YES on the Replenishment tab of the Data -> Parts Items -> Location Information screen
Tip: To learn how to use this screen, refer to how to calculate replenishment parameters.
The Calculate Replenishment Parameters screen has one tab, Basic Info. The fields in the tab enable you to calculate replenishment parameters.
Run ID
Identifier of the run. Automatically assigned by the system. This field is display only.
Location ID
Identifier of the location where the parts are located. This field has a list box. The location name displays to the right of the field. Values are calculated for one location at a time. This field is required.
Note: If location security is in effect, it applies to this screen. To learn more about location-level security, go to location level access control.
Location IDs are defined on the Basic Info tab of the Data -> Setup -> Organization Structure -> Locations -> Primary Information screen.
From
Part ID: Identifier of the part. This field has a list box.
Part suffix: Number associated with the part ID, which distinguishes it from other parts with the same part ID.
Bin ID: Identifier of the bin where the part is stored. This field has a list box. When you generate a stock transfer on the Data -> Enterprise Purchasing -> Replenishment -> Replenishment Management screen, this field displays the primary bin associated with the part ID-suffix and sending location.
To
Part ID: Identifier of the part. This field has a list box.
Part suffix: Number associated with the part ID, which distinguishes it from other parts with the same part ID.
Bin ID: Identifier of the bin to which the part is going. This field has a list box. When you generate a stock transfer on the Data -> Enterprise Purchasing -> Replenishment -> Replenishment Management screen, this field displays the primary bin associated with the part ID-suffix and receiving location. Bins are identified on the Basic Info tab of the Data -> Parts Items -> Location Information screen.
Other items (wildcards OK)
You may use wildcard characters in the following three fields. All fields are optional.
Product category ID
Identifier of the part product category. This field has a list box. The category description displays to the right of the ID. This field is optional. Product categories are defined on the Data -> Parts Items -> Setup -> Product Categories screen.
Keyword
Valid keyword for the part. It is a short (15-character) entry that describes or generally categorizes the part, such as FILTER. This field has a list box. Keywords for parts are defined on the Data -> Parts Items -> Setup -> Keywords screen.
ABC code
Inventory management classification for this part at this location. This value applies only to the EOQ replenishment method. Any letter from A to Z is valid.
Calculate item
The calculation that should be performed. The options are EOQ, MIN-MAX, or ABC CODE.
If ABC CODE is selected, the following calculation is performed across all parts at the location to determine the appropriate ABC code for each part in the filter criteria.
Step 1. Determine the annual usage in units for each item for the past 12 months.
Step 2. Multiply the annual usage quantity with the average unit price of each item to calculate the annual usage in value for each item.
Step 3. Item with highest value usage annually is ranked first. Then the next lower annual usage item is listed until the lowest item is the last item listed.
Step 4. Applying the specified percentages to the list, set items to A, B, C, or D/other based on the apportions.
The results are stored on the Replenishment tab of the Data -> Parts Items -> Location Information screen, along with a notation that the value was calculated automatically, the date that the calculation occurred, and what the previous value was.