Product Administrator Usage Rate Analysis Report ranges and options

Ranges

Options

Only Select Recommended Differences?

Select Yes to only report on the products with a difference between the current usage control and the recommended usage control settings.

# Months For (B)ackward Method

This method is the traditional method of calculating a moving average. For example, if you run the report in January 2020, specify 12,9,5 to examine usage for January, March, and August of 2019.

Specify the number of months from the current month to calculate the average usage. To exclude this calculation from the report, clear the field.

# Months For (T)rend Method

This method uses year-to-year product totals to develop a percentage of business growth or decline to anticipate stock for the upcoming season.

Specify the number of months to examine using this method. Separate each number by a comma. To exclude this calculation from the report, clear the field.

# Months For (F)orward Method

This method examines usage from the previous year, starting with the month that is based on the value that you specify in this field. This formula is used:

present year – 1 year + number of months forward

Specify the number of months forward from which to examine the previous year. Separate each number by a comma. To exclude this calculation from the report, clear the field.

For example, if you run this report on October 15, 2019, specify 2 to examine usage from December 15, 2018.

# Months For Month Roll (Blank) Method

This method calculates the usage rate, based on the seasonality of the product and usage months. This method is the default method for new products.

If the product is seasonal, the usage rate is calculated from the previous year plus the number of months specified in field. Product Administration Month End Processing Report rolls back 12 months and then goes forward the number of months specified in the field to calculate usage. Two previous years are used when applying the Trend percentage for yearly changes.

For seasonal products, the usage for the past 12 months and rolls forward for six months to calculate an average usage rate. This average usage rate is applied to the trend percentage.

Jul-Feb (320 + 200 + 110 + 100 + 70 + 130) = 930
930 /6 = 155
Trend Percentage = 2290 ¸ 2120 (95 usage ¸ 94 usage)
Trend Percentage Cap = 150%
Usage: 155 x 1.80 = 167.4

For regular products, leave this field blank. The average usage rate is calculated using the usage history for the past six months. The usage is totaled and then averaged.

Jan-Aug (100 + 150 + 300 + 320 + 280 + 210) = 1360
Usage: 1360 / 6 = 226.67

Exponential Smoothing Method (Alpha Fctr)

Exponential Smoothing uses a mathematical equation, alpha factor 1 through 9, to give more weight to the recent past. Fluctuations are then smoothed. Based on this information, the history is used to develop a usage estimate for the future.

Specify the number of months to examine. Valid values are 1 through 9. Separate each number by a comma. If you do not want to use this method, clear the field.

Exponential smoothing uses a moving average but applies an alpha factor to the average usage to place more weight on recent history. This formula is used when an alpha factor is specified in the field:

Usage = {Current Month’s Usage x (Alpha Factor/100)} + [{1- (Alpha Factor/100)} x Usage]
Current usage from (IC Administrator Month End Processing) = 210
Usage Rate from Product Warehouse Product Setup = 150
Alpha Factor = 7
Usage = {210 x (7/100)} + [{1-7/100}] x S

In this example, 70 percent of the weight was placed on the current usage:

Alpha Factor = 7
Usage = {210 x (7/100)} + [{1-7/100}] x S

The current month’s usage is the last month that has been calculated by the Product Administration Month End Processing Report.

These products are suited to exponential smoothing as a method of calculating usage:

Products that are new and do not have much usage history
Products with usage that is in rapid escalation or decline
Products that have a demand created from one or a few customers who buy in cycles that extend beyond a single month

Export Data?

Select Yes to export the data to a flat file.

Export File (Including Directory)

If you are exporting the data to a flat file, specify the name of the export file including the directory. If the value is too large for the field, specify the remainder of the value in the Continued field.

Export Format

Specify the export data format. Specify 1 for standard format. Specify 2 for custom format.