![]() The re-order point qty therefore would be (40 times 1.25 or 50 units). EXAMPLE: Item A123 is classified as a âCâ ranking (25% safety stock), has a lead time of 20 days and a daily use rate of 2 units. The lead time in days would be multiplied by the daily use rate and the result of this multiplied again by the safety stock. Re-order Point calculation: This will be done on a weekly boundary based on the items lead time (Average of last xx number of receivingâs) and the safety stock associated with the items ABC ranking.New product will default to a standard parameter for the Auto Lock weeks and a Re-order point will need to be entered manually. NOTE: the manual change of the Auto Lock forces entry into the Re-order point field to enter the quantity manually. Zero will be considered as indicating the item is on automatic re-order point calculation. The weekly process will decrement this field by one until it reaches zero. If the Re-order point is to be permanently locked a value of 99 is used in the Auto Lock field. There is also be a new field that controls whether or not the re-order point is recalculated weekly or is locked for the number of weeks enteredmanually into this field. Re-order Point: Will replace or become the current Minimum Qty field on the item master.The number of weeks used in the sales ranking is determined by the user, 1 ï 104. Each range will be associated with an ABC ranking which in turn will carry the number of required inventory turns as well as the safety stock %. This value will be compared to a table that carries up to twenty ranges, 100 â 1000, 1001 â 5000, etc. ABC ranking: A new weekly process will calculate the annual sales in $âs at cost or Unitâs, based on which method is being used, for each part number.In addition, a prorated calculation is performed for partial shipments, with an option to receive any partial shipment into the DC only. ![]() The PO receiving process is also enhanced to allow a recalculation of the branch split if the order was a corporate PO. This requires user confirmation that split POâs are desired on any given SO. This will be used to determine when a corporate suggested order could have one or more POâs produced because one or more branches meet the free shipment criteria. The vendor profile is also expanded to support the rules for pre-paid freight shipment. ![]() There is a corporate version of the ABC ranking table as well as one for each branch, carrying different values that will support inter branch versus corporate replenishment. The fundamental changes include the adoption of a weekly sales bucket (Current plus the last 104 weeks), an ABC ranking based on Annual Sales $âs or Units and the introduction of an automatic reorder point based on a dynamic lead time (Last x receivingâs) and a parameterized safety stock factor by sales rank. In addition, the demand cleansing or smoothing will become more granular by the use of weekly versus monthly demand. This is a complete overhaul of the current suggested order logic in an attempt to provide the user with more of a table driven utility while at the same time making the underlying logic that determines the order quantities more transparent.
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