Product Replenishment Setup - Ranking field descriptions

Fields are presented in alphabetical order within each section.

Click the links to access field descriptions for that section:

Number of Months

New Products

Specify the number of months that qualify products as new.

Note: Generally, products are defined as new for their first six months in inventory. This allows them to acquire enough usage to be reliable for replenishment recommendations. If you have a large number of seasonal items, you may want to set this number higher.

You can assign a ranking to new products in the New Product Rankfield. Warehouse, vendor, and product line settings override any settings at the company level .

This setting for new products is also used when applying the smart transfer rounding logic on warehouse transfers of new products. You set up rounding parameters in Product Replenishment Setup - Rounding.

Long Term Surplus

Specify a number of months to use when calculating long-term surplus displayed in Product Availability Inquiry, Purchase Demand Center Entry, and Transfer Demand Center Entry. If you are setting this value at the company level, the defaulted value is 12.

Ranking

Months History

The number of months of history to use when ranking products, up to 24. Hit history includes invoiced sales order line hits, warehouse transfer line hits, and lost business hits.

New Product Rank

The minimum rank level that will be assigned to new products (product with the number of months usage history less than or equal to the number you entered in the Number of Months field) when you generate rankings in Product Administration Inventory Classification and Rank Report. Even if this product experiences hits that would place it in a lower rank, it will be assigned this minimum rank.

The recommendation for most new products is to set it to a rank in the mid-range, or C. This will ensure that for the first six months (or whatever period you define for the Number of Months field), the low volume typically experienced by new products will not cause it to be ranked at too low a level.

Rank Based On

Select either Percentage of HitsNumber of Hits. This setting determines whether the ranking of products are based on a percentage of total hits, or on the minimum number of hits defined on the Detail Rank window. A percentage value of 80 in rank A, for example, would assign a ranking of A to those products that generate 80% of the hits. or

These options are available at the company and warehouse levels only.

Note: Distributors with a broad range of products may want to consider ranking by number of hits. Using a percentage ranking in this situation tends to cause the slower-moving products to be ranked higher than they ought to be.

Ranking Type

Select Hits to activate Hit ranking functionality. You must define the ranks (A, B, C, D, and so on up to Z are allowed) on the Detail Rank Records window before you can leave this window. Hits ranking is calculated in Product Administration Inventory Classification and Rank.

Select ABC Stratification to use the A, B, C, and D stratification ranks. ABC Stratification ranks are calculated in Product Administration ABC Inventory Evaluation and used in Product Administration Month End Processing. You can further define the stratification logic for each rank in Product ABC Stratification Setup if you don't want to use the standard ABC Stratification logic. This ranking option is available at the warehouse, vendor, and product line levels only. This option is not available at the company level.

If you select No or Ignore, the Product Warehouse Product Setup record is not updated with the rank. Information you enter on the Detail Ranking window (accessed when you click the Detail Ranks link) is stored, but not used (with the exception of ordering control calculations that use detail ranking information during Product Administration Month End Processing). The Product Administration Inventory Classification and Rank Report or the Product Administration ABC Inventory Evaluation Report will not perform ranking calculations, even if the option is selected.

Ranks

The number of ranking levels to use when performing the ABC ranking in the Product Administration Inventory Classification and Rank Report. This setting is permitted on the company record only. Each rank applies to an alphabetic character from A to Z. You can specify up to 26 ranks, although it is recommended you limit the ranks to 5 or fewer.

Total Detail Rank

The total allocation of percentage points to all ranks. If you selected ranking based on percentage, this must equal 100% before you can save the record. To allocate percentages to each rank, click the Detail Ranks link.