Low usage

You may carry some products for which you are required to always have at least 1 or 2 in stock, despite their low demand. This might be due to a commitment you made to a particular customer, or because of long lead times on critical parts.

The low usage exception is created by the Product Administration Month End Processing Report for products that experience demand that falls below a preset minimum. The order point, line point, and order quantity are corrected based on the values that are specified in the Usage Rate-Cost Matrix window, which is accessed from Product Replenishment Setup-Usage. The product is not frozen, as would normally occur with standard system processing.

The values set up in Product Replenishment Setup-Usage include an annual usage amount, and the usage rate and cost levels for each rate.