Related topics
For each item/warehouse combination in the system, you can simulate the purchase suggestion analysis to determine why certain combinations appear on the purchase suggestion, or why they do not appear on the purchase suggestion.
- Item
- To view the purchase suggestion analysis for a specific item/warehouse combination, enter the item code for the combination. Note: The simulation can only be done for externally supplied ROP items, as defined in the Warehouse structure.
- Warehouse
- To view the purchase suggestion analysis for a specific item/warehouse combination, enter the warehouse for the combination.
- Extra planning days
- Enter the number of days, if you want to add days to the existing planning time. The number of days you add here will be added to the planning time shown in the header of the next panel. Note: This is a simulation. Changing extra planning days will not result in an update of the Inventory Control system. It will only affect this simulation.
- Extra quantity
- Enter the percentage by which you want to increase the suggested quantity on the purchase suggestion.
Purchase suggestion simulation (INVD5152)
This panel displays all the data used in the purchase suggestion creation for the item/warehouse combination that you selected on the previous panel. If the item in the header is a purchase type 2 item, click OK to look at additional purchase suggestion information.
Note: If you simulate a purchase suggestion for a purchase type 2 item where the Intermediate purch field in the header is NO, and it is not yet time for a periodical check for this item/warehouse combination, then you will get a warning message on this panel. The reason for this is that the conditions established for this item/warehouse combination indicate that it is not yet time for a stock level check. Therefore, this item/warehouse combination will not appear on the real purchase suggestion at this time. The replenishment time for the simulation is set to the replenishment time including the periodical interval.
Function keys
| Display quantity calculation | Display the formulas for suggested stock quantity and suggested purchase quantity. If this is a purchase type 2 item, click OK to look at the next panel. |
- Item
- Displays the selected item.
- Warehouse
- Displays the selected warehouse.
- Supplier
- Displays the supplier number.
- Time axis
- Indicates if the selected item is included and updated in the time axis.
- Purchase type
- Displays the purchase type for this item/warehouse combination.
- Planning time
- Displays the planning time. If additional planning days were entered on the initial panel, then the planning time here is the original time + the extra days.
- Net physical stock
- Displays the net physical stock for this item/warehouse combination. If the item is under batch control, then the net physical stock is calculated as follows:
+ Stock on hand
– held quantity
– quantity under incubation
– expired quantity
= Net physical stock
- Purchase orders
- Displays the amount of this item, in stock units, for this warehouse, currently on order within the planning time. This amount includes manual orders.
- Returns
- Displays the amount of returns to supplier, in stock units, within the planning time for this item/warehouse combination.
- Sales orders
- Displays the amount of sales orders within the planning time, in stock units, for this item/warehouse combination. This value includes manual reservations.
- On pick list
- Displays the amount of this item, in stock units, currently on pick lists for this item/warehouse combination.
- RT available
- Displays the available stock for this item/warehouse combination within replenishment time. It is derived from the fields above.
Available stock = (Physical stock + Purchase orders Manual orders) – (Returns + Sales order + On pick lists + Manual reservations)
- Forecast demand
- Displays the forecasted demand, in stock units, during planning time for this item/warehouse combination. The demand starts from today’s date. It is recalculated each time you run this simulation.
- SST
- Displays the safety stock level, in stock units. This value is up-to-date. It is recalculated each time you run this simulation.
- ROP
- Displays the reorder point derived from the values above.
ROP = Forecasted demand + SST
- ROP deviation
- Displays the deviation in ROP.
ROP deviation = ROP – Available stock Note: If the ROP deviation is greater than zero, then this item/warehouse combination will appear on the purchase suggestion.
- EOQ
- Displays the economic order quantity for this item/warehouse combination, retrieved from the Inventory management item file.
- Purchase unit
- Displays the purchase unit for this item/warehouse combination, retrieved from the Purchase price file.
- Pack size
- Displays the pack size for this item/warehouse combination, retrieved from the Inventory management item file.
- Conversion factor
- Displays the conversion factor used to convert from stock unit to purchase unit.
- Suggested stock qty
- Displays the suggested quantity to purchase in stock units. The calculation used to determine this quantity depends on the purchase type of the this item, and the purchase code defined for this purchase type in the IC control file. The description next to the suggested stock quantity tells you which purchase code is defined for this purchase type in the IC control file.
Note: If the minimum or maximum purchase order quantity has been used, an additional message will be shown to the right saying; “Max order qty used” or “Min order qty used”. Click Display quantity calculation to see the calculation details.
- Suggested purch qty
- Displays the suggested quantity to purchase in purchase units. Note: Click Display quantity calculation to see the calculation details.
Purchase suggestion simulation (INVD5153)
This panel displays what formulas are used to calculate suggested stock quantity and suggested purchase quantity.
- EOQ
- Displays the economic order quantity for this item/warehouse combination, retrieved from the Inventory management item file.
- ROP deviation
- Displays the deviation in ROP.
ROP deviation = ROP – Available stock Note: If the ROP deviation is greater than zero, then this item/warehouse combination will appear on the purchase suggestion.
- Min forecast demand
- Displays the forecasted demand, in stock units, during planning time for this item/warehouse combination. It is recalculated each time you run this simulation. If the item belongs to purchase type 2, then this field displays the forecasted demand from today’s date until the next periodic purchase.
Note: The next periodic purchase is shown in the Work with periodic purchase and order targets program.
If the item belongs to purchase type 3, then this field displays the forecasted demand during a number of period. The number of periods is defined the No of periods type 3 field in the IC control file. The calculation starts in the first period outside the replenishment time.
- Extra quantity
- Displays the percentage by which the suggested quantity on the purchase suggestion is increased.
- Min/Max order quantity
- Only shown if minimum or maximum values have been defined for the item/warehouse in the Item/purchase price file. Displays either the minimum or the maximum order quantity, depending on which of these two values have been used in the purchase suggestion creation.
If any of these values are used, the calculated suggested quantity is compared to both these values. If the calculated suggested quantity is lower than the minimum order quantity or higher than the maximum order quantity, the calculated suggested quantity will be replaced by one of the min/max values.
- Calc base purch qty
- Displays the original calculated base purchase quantity. The EOQ, but not the pack size and the minimum order quantity, is included in the calculation of this value. This information can be useful if the suggested purchase quantity has been replaced by either the Minimum order quantity or the Maximum order quantity.
Calculations
The calculations are as follows:
| Calculation | Description | |
|---|---|---|
| 1 | Optimal stock qty/Conversion factor = Suggested purchase qty | |
| 2 | As items are purchased according to pack size, you must calculate the pack size multiple for the suggested purchase quantity:
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| 3 | With the pack size multiple, you can then calculate the true suggested purchase quantity according to pack size. Calculate the following:
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| 4 | Now that you have the suggested purchase quantity according to pack size, you can get the true suggested stock quantity according to pack size too. Calculate the following:
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Purchase suggestion simulation (INVD5154)
This panel is only shown if the item in this item/warehouse combination is a purchase type 2 item. Each purchase type 2 item is linked to an entry in the Periodic purchase table. These entries are set up per supplier/line code, and contain the criteria for deciding when the available stock level for a purchase type 2 item should be checked against the reorder point (ROP). This determines when a purchase type 2 item will appear on a purchase suggestion.
The information that you see on this panel is the entry in Work with periodic purchase and order targets, which is linked to the item/warehouse combination in the header. It is the criteria for determining when the available stock level for this item/warehouse combination will be checked against ROP.
- Item
- Displays the selected item.
- Warehouse
- Displays the selected warehouse.
- Supplier
- Displays the supplier number.
- Time axis
- Indicates if the selected item is included and updated in the time axis function.
- Purchase type
- Displays the purchase type for this item/warehouse combination.
- Planning time
- Displays the planning time. If additional planning days were entered on the initial panel, then the planning time here is the original time + the extra days.
- Intermediate purch
- Displays YES or NO depending on the value on the purchase suggestion line, retrieved from Work with periodic purchase and order targets. Note: If YES, it means that this simulated purchase suggestion is based on an intermediate evaluation. That is, it is not based on the value in the No of days interval field.
- Line code
- Each entry in Work with periodic purchase and order targets is established according to supplier and a unique line code for the supplier. If a line code exists for the supplier in the header, it is shown in this field. The line code description is also shown.
- No of days interval
- Displays the interval of working days that will elapse before the available stock level for this purchase type 2 item/warehouse combination connected to this entry is checked.
- Last suggestion
- The date in this field tells you the last time the available stock for this item/warehouse combination connected to this entry was checked.
- Day of week 1 through 3
- If any of these fields are completed, it tells you that the stock level for this item/warehouse is checked on certain days of the week.
- Day of month 1 through 3
- If any of these fields are completed, it tells you that the stock level for this item/warehouse is checked on certain days of the month. Each number represents a day of the month.
- Intermediate purch
- Displays YES, if the system checks the available stock level for this item/warehouse combination every time the Create purchase suggestion is executed, even if the interval specified above has not elapsed. Displays NO, if the system only checks according to the interval that you specified.