Product Replenishment Setup - Usage - Usage Rate Cost Matrix field descriptions

The Cost Matrix table allows you to create up to 10 cost breaks per usage rate level. The first Cost field is always zero. During Product Administration Month End Processing, if a product’s usage falls below the usage rate amount, the product’s cost is compared to the cost in the second level. If it is less than this cost, the ordering controls in the first cost level is used. If it is greater than the cost in the second level, the third level is checked, and so on.

To complete the Cost Matrix table, specify the Cost amount (the first level is zero, and cannot be changed), New Order Point, New Line Point, and New Order Quantity for each cost level. These new ordering controls override the ordering controls calculated during Product Administration Month End Processing. The original ordering controls are saved in the Raw Order Point and Raw Line Point fields in Warehouse Products Setup - Ordering. You can also view the adjusted and raw ordering controls, as well as the new calculated order point, line point, and order quantity in Product Exception Processing Administration. The exception description is Low.

The usage rate level for which you are setting the values in the Cost Matrix Table.

If you select an existing level to edit, this field displays the level number and cannot be changed.

If you click New to create a new level, specify the level number. If it is zero, you can enter the next undefined level number. For example, if you have not defined any levels, specify 1 in this field. If you want to maintain one of the levels already defined, select it in the Usage Rate table and click Edit.

The usage rate amount that applies to the specified level. If you are changing an existing usage rate amount, click Save to save your changes. If the current usage for a product is less than the amount you specify, its ordering controls are reset to the values that correspond to the product's cost in the Cost Matrix table. You cannot enter a value greater than 6 (which is half a unit, calculated annually). It must also be less than the minimum annual usage amount entered on the Usage window.