Settings that affect Demand Center processing
These setups affect the outcome of the Purchase Entry Recommended Replenishment Action Report:
Product Line Setup
To determine which records to review, the Purchase Entry Recommended Replenishment Action Report scans your records for a buyer-vendor match that coincides with the buyer-vendor parameters you specified in the report options. In addition, you can set the purchasing parameters for the products that are tied to a product line in Product Line Setup-General.
- In the General section, if the Order Below LP option is cleared, then, products are ordered when the purchase net available (PNA) is less than or equal to the line point. If this option is selected, products are not ordered until the PNA falls below line point. This option is used in Purchase Entry Recommended Replenishment Action Report in conjunction with the Product Warehouse Product Setup ordering controls.
- In the Purchasing Parameters section, under Vendor, if you select Use ROQ to use the requested order quantity (ROQ), the replenishment (PO RRAR) process uses the order quantity or out-of-season order quantity from Product Warehouse Product Setup as the quantity recommended to be ordered. This quantity is also applied if you have selected the report option, Apply Halfway Rounding Rules?, when you run the Purchase Entry Recommended Replenishment Action Report.
- If you clear Use ROQ, then
the Purchase Entry Recommended Replenishment Action
Report always uses the standard calculation formula to calculate the
order quantity:
- line point minus purchasing net available
When the Purchase Entry Recommended Replenishment Action Report runs, several other values in Product Line Setup are reviewed. For each product that is tied to the product line, the report reviews: usage rate, order point/min, line point/max, order quantity, and review cycle. Products with quantities that are at or below the specified level are included on the report if the buyer-vendor match is met. The order method or order quantity determines the quantity the report suggests.
Product Warehouse Product Setup
When you initially set up your product files, you are required to provide the primary vendor and product line for each product with a vendor Authorized Replenishment Path (ARP). Providing a product line enables you to perform line buying from your vendor. Line buying offers a way to reduce the cost of the products, but can place a restraint on your ability to replenish your inventory. Line buying identifies those products that should be purchased together to achieve a free-freight purchase, a volume discount, and so on. The replenishment process uses quantities defined in Product Warehouse Product Setup. The order method or order quantity determines the quantity the report suggests. For example:
- If a product's purchasing net available quantity is below order point, and is in class 1 through 4, an exception exists.
- If you select the Purchase Entry Recommended Replenishment Action Report option, Apply Halfway Rounding Rules?, the report suggests ordering a greater quantity to compensate for low product levels.
Family Groups
In Product Warehouse Product Setup-General, you can select a Family Group. The family group is a smaller, more specialized section of the product line. For example, a product line set up for electrical wiring and three-way wiring may be grouped within the same family. Any combination and quantity of the products ordered from this family may qualify for a special discount. The Purchase Entry Recommended Replenishment Action Report prints all family group products, regardless of their status in relation to the order point or line point. This is for informational purposes only. If a product is already on the report for some other reason, such as a nonstock order, the product is not included in the family group section of the report.
Within a family group, your goal may be both a target buy level, and a target buy level for the product line. Do not pick products from a family group unless they are ready to be ordered. If you order a family group product when the purchasing net available is still above line point/max, you will fall into the inventory imbalance. Family group products may be added to the order after the Purchase Entry Recommended Replenishment Action Report merge is performed.