Exceptional usage
The parameters in the Exceptional Usage Control section in Product Replenishment Setup-Usage determine whether exceptional usage is corrected automatically by the Product Administration Month End Processing Report.
Normally, products with exceptional usage are frozen. If these options are selected, the exceptional usage condition is corrected and an exception is created. The product is not frozen. Exceptional usage is defined by the Product Administration Month End Processing Report. It compares the usage for the last month to the total usage of the previous user-defined number of months. If the last month is greater than the total, then the product is showing exceptional usage.
The parameters include a usage multiplier and the number of months to use when determining an override value. This calculation is used to determine override usage:
- Total average prior months’ usage * Usage multiplier = Override usage
This example shows the override usage calculation based on a product's previous six months' usage:
Prior 6 months' usage: | December | 19 |
January | 20 | |
February | 25 | |
March | 22 | |
April | 20 | |
May | 18 | |
Total usage: | 124 | |
Current months' usage: | June | 128 **EXCEPTIONAL** |
Total average usage: | 124/6 = 21 | |
Usage multiplier: | 1.10 | |
June's override usage: | 1.10 * 21 = 23.1, rounded to 23 |
Each time a product’s usage is overridden, whether automatically, or manually, an override reason can be entered. You can select a reason in Product Replenishment Setup-Usage. The reason is displayed with the exception in Product Exception Processing Administration.