Usage rate analysis

Usage control methods are assigned in the Product Warehouse Product Setup. The usage control method that is assigned to a product can have a profound effect on the usage rate calculation for that product. Because the usage rate is an important component of ordering control calculations, it is important to be accurate .

To analyze your usage control methods, run the Product Administration Usage Rate Analysis Report to create a data file of information. The Product Warehouse Product Setup records are selected based on the ranges and options you specify for the report. Each usage control method is used to calculate the usage rate for the previous month. The calculated usage rate is then compared with last month’s actual usage for the product. The usage control method that results in the closest calculated usage rate is then recommended. A run number is assigned each time the Product Administration Usage Rate Analysis Report is processed.

Next, run the Product Administration Usage Rate Update Entry and specify the run number. The information that was generated by the Product Administration Usage Rate Analysis Report is displayed. You can review this information and update Product Warehouse Product Setup records with new usage control methods. If you update the warehouse product records, the new usage control methods are used when the usage rate is recalculated next.