Product Replenishment Setup - Adjusters overview
Use this page to manage products that experience exceptional usage. You can make adjustments to the order point on products in response to customer’s actual buying habits.
When determining replenishment amounts, normal averaging of usage does not take into consideration instances when customers buy larger quantities on less frequent orders. If a product experiences minimal hits, but the quantities are higher than average usage, you may experience a stock shortage using standard system replenishment recommendations. This can be a common occurrence if some of your customers order in standard packs, although others order smaller quantities.
Two adjusters are maintained on the Adjusters view:
- Average sales quantity (ASQ)
- Five-high
You can view both the adjusted order and line points and the raw order and line points in the Product Warehouse Product Setup - Ordering and Product Inquiry - Replenishment views or on the Purchase Buyers Threshold Report. The raw order and line points are calculated order/line points on the Product Administration Month End Processing Report.
Average Sales Quantity (ASQ)
ASQ is calculated by dividing a product’s usage by its line hits. If the ASQ calculation is greater than the order point calculated by Product Administration Month End Processing, the order point is adjusted to the ASQ value. This calculation is not performed if the minimum number of line hits defined here is not met.
The Average Sales Qty option must be selected in Product Warehouse Product Setup - Ordering for the ASQ parameters to be used.
Five-High Sales (5-Hi)
The Five-high calculation reviews the highest sales for the number of usage months defined in Product Warehouse Product Setup or Product Replenishment Setup - Ranking - Detail Ranks. If the minimum number of hits is met, the five highest sales quantities and related order information are stored and used to calculate an average. The the minimum number of hits is defined in the 5-Hi Minimum Hits field. The highest sales quantity is thrown out and the remaining sales are added together and divided to determine an average of the highest sales values. If this average is greater than the Product Administration Month End Processing Report calculated order point, the order point is adjusted to equal this value. The adjustment must not exceed the maximum amount difference for the Five-high adjustment.
This adjustment to the standard order point compensates for products where sales hits are low, but customers tend to buy large package quantities..