Setting post processing recommendations

When the engine's recommended change is small for any particular item, it might not be worth the staff time to implement the change. To omit those recommendations, set a percentage for medium or large quantities and a specific value for a smaller quantity.

These filters can be set separately for recommendations to decrease or increase inventory:

  • Decrease In Recommended Reorder Point. This filter defines circumstances in which the engine should not make recommendations to decrease reorder point (ROP).
  • Increase in Recommended Reorder Point. This filter defines circumstances in which the engine should not make recommendations to increase reorder point (ROP).

Use this procedure to filter recommendations that may be unhelpful after the engine has created recommendations.

  1. Sign in as Application Administrator or Supply Management Administrator.
  2. For Application Administrator, select Supply Management > Supply Management Setup > Inventory Intelligence > Configuration.
    For Supply Management Administrator, select Inventory Intelligence > Configuration.
  3. Select the Post Processing tab.
  4. In the Decrease In Recommended Reorder Point section, specify this information:
    Break Point
    Specify a low threshold number of units for current ROP.
    Absolute Difference
    Specify the number of units for a change in ROP. If ROP and change in ROP is less than these values, then an increase recommendation is not made.
    Percent Difference
    Specify a percentage value for the low threshold change in ROP. This filter applies if the low threshold number of units for current ROP and change in ROP are not met. For example, you can specify these ROP filters:
    • If the ROP is less than 40 units, and the change in ROP is less than two units, then do not recommend a ROP decrease.
    • If the ROP is greater than or equal to 40 units, and the change in ROP is less than 5.00%, then do not recommend a ROP decrease.
    Minimum On Hand Level Threshold (In Days)
    It is often not helpful to make a recommendation to decrease ROP if the current inventory is less than a value representing the average. Specify a threshold for the minimum on-hand inventory in days of supply average usage. If the threshold for minimum on-hand inventory is not met, then a recommendation to decrease ROP is not made.

    For example, when reorder for an item happens daily, you can specify the minimum on hand level threshold as 1.5 days. The average on-hand inventory usage value for the item is calculated in days. If the current on-hand inventory value does not meet the threshold of the average on-hand usage for 1.5 days, then a recommendation is not made.

  5. In the Increase In Recommended Reorder Point section, specify this information
    Break Point
    Specify a low threshold number of units for current ROP.
    Absolute Difference
    Specify the number of units for a change in ROP. If ROP and change in ROP is less than these values, then an increase recommendation is not made.
    Percent Difference
    Specify a percentage value for the low threshold change in ROP. This filter applies if the low threshold number of units for current ROP and change in ROP are not met. For example, you can specify these ROP filters:
    • If the ROP is less than 40 units, and the change in ROP is less than two units, then do not recommend a ROP increase.
    • If the ROP is greater than or equal to 40 units, and the change in ROP is less than 5.00%, then do not recommend a ROP increase.
    Do Not Recommend If Demand Spike Exists (Times The Average)
    Specify a number to multiply against the average demand spike number. Large demand spikes are omitted to prevent the unusual situation, or bad data, from artificially increasing a recommendation.
    Drop recommendations with change smaller than transactions UOM
    Recommendations are based on stock UOM, but changes that are less than the transaction UOM may not have any real-world effect. Select this check box to omit these recommendations.