Product Warehouse Product Setup - Ordering overview
Use this page to establish ordering controls that determine when additional quantities must be ordered.
This information directly relates to the Purchase Entry Recommended Replenishment Action Report and Transfer Entry Recommended Replenishment Action Report.
Each time you run the Product Administration Month End Processing Report, and select Yes for the Recalculate Ordering Controls option, the system recalculates the ordering controls information.
Ordering controls help maintain adequate inventory levels and ensure customer service levels are met. In stock-out situations, sales can be lost. The quantity you order impacts inventory size. If inventory control is not used when ordering, subsequent actions may result in inventory correction. Ordering controls must be set up before you replenish your inventory.
Prerequisites
Set up these records before you order warehouse products:
- Product Line Setup
-
SA Table Code Value Setup
- Units
- Override
- Frozen Reason
Ordering
In this section, view or edit the Ordering settings, including order point Method, Critical Point, Order Qty, and Surplus Calc. If you edit the record, click to refresh the page and see the effects of your changes.
Ordering Units
If you specify the Transfer Unit, it is the default unit of measure for these functions, unless you add line items to a warehouse transfer:
- Transfer Entry Recommended Replenishment Action Report
- Transfer Entry
- Transfer Entry Demand Center Entry
The standard unit of measure validation with the Product Extended Unit Conversion Setup and SA Table Code Values Setup records occurs.
Usage
In this section, view or edit these settings for the warehouse product:
- Rates
- Months
- Frozen
- Methods
Click Usage to view Usage Information.
If you are create or edit a warehouse product, you can update the usage. If you are in view mode, you can only use this link to view usage.
The Trend link is available if you select Trend % in the Method field. Click to access a trending inquiry to validate the trending percentage of a seasonal product.
Seasonality
This section contains the parameters that define this product’s seasonality, including the beginning and ending dates of the season, and review days frequency.
Trending Demand
You can define your trending demand parameters in this section. Season trending demand is calculated if these conditions are met:
- The Method in the Usage section is Trend %.
- The Use Seasonal Trending field in Product Replenishment Setup - Usage is set to Yes.
A seasonal trending percentage is applied when Product Administration Month End Processing Report is run based on these options and the parameters set up here. The seasonal trending calculation:
- determines the usage for the past number of usage months one year prior
- compares to the immediate past number of usage months to derive a percentage
That percentage is considered the trend.
If no maximum seasonal percentage is set up at the product level in on this page, the parameters in Product Replenishment Setup - Usage are used.
Order Point Adjusters
The Adjusters link, is available for products with an Inventory Value Change exception. Inventory value changes occur when one of these order point adjusters is applied:
- Average Sales Quantity (ASQ)
- Five-high
- Threshold Minimum
The information displayed on the Adjusters Info window is stored in the exception record created by the Product Administration Month End Processing Report.
Lead Time/Date
You can recalculate lead time for purchase order receipts.
ABC Stratification
The stratification and ranking results generated by the Product Administration ABC Inventory Evaluation Report are displayed in this section.
Frozen
Use this section to view a product’s frozen and stock-out information. The information on this window is updated by Product Administration Month End Processing.