Demand smoothing

When products experience high spikes in demand, it called exceptional usage. When it occurs, the product is frozen and the buyer is required to review the product and make adjustments to ordering controls before automatic replenishment occurs. The same occurs for products that experience low usage or extended stock-outs. Generally, these situations require that the buyer override the product’s usage for that month, so that averages are not impacted by unusual, or nonrecurring factors.

Parameters can be set up in Product Replenishment Setup-Usage to correct these situations and prevent products from being frozen. In each case, exceptions are noted in the Product Administration Month End Processing Report. These exceptions can be monitored in the Product Exception Center Administration.