Product Replenishment Setup - Usage field descriptions
Fields are presented in alphabetical order within each section.
Click the links to access field descriptions for that section:
General Usage
- Parent Warehouse Usage
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The General Usage options are important to distributors using a central warehousing distribution system. These options apply to products with an authorized replenishment path of warehouse, and define the method by which the parent warehouse’s average usage is calculated. These options are set at the company-level only.
If you specify the Rolled Up Usage option, the parent warehouse’s average usage is calculated using all the subsidiary (child) warehouse’s average usage, as long as the authorized replenishment path is warehouse. Transfer usage is not considered. The usage in subsidiary warehouses will also be considered during Product Administration Month End Processing when reviewing the parent warehouse product's low usage. If sufficient product exists in the subsidiary warehouses, the product in the parent warehouse will not be frozen.
Average monthly usage is calculated for each branch, or child warehouse, during Product Administration Month End Processing. These usage values are then rolled up to the central warehouse, and an average usage value is calculated. Multiple tiers are supported. In other words, if the branches are supplied by multiple distribution warehouses, which are, in turn, supplied by a central warehouse, the usage is rolled up to the distribution warehouse, and then to the central warehouse.
You can view the usage values that are rolled up into a parent warehouse by viewing the parent warehouse product in Product Inquiry - Replenishment. Click the Rollup hyperlink to view the Rollup Overview window. (This hyperlink only appears for the parent warehouse product; it does not appear for the child warehouse product.)
Note: If you specify Rolled Up Usage and then run Product Administration Month End Processing for a specific warehouse, the usage for the branches that are supplied by the warehouse are not updated. The old usage for these branches will be rolled up into the main warehouse, however. Include all child warehouses and the main warehouse in the warehouse range when you run Product Administration Month End Processing. You can either rerun Product Administration Month End Processing for each product for all warehouses, or rerun it for all products and all warehouses.You can determine whether you want order-as-needed (OAN) product usage to be included in the usage rollup for the parent warehouse on a product by product basis when you are using the rolled up usage method. The default is not to include OAN products. To include OAN products, specify the Roll Up OAN Usage field in Product Warehouse Product Setup-Ordering. The field only appears if the parent warehouse usage is set to Rolled Up Usage, the warehouse product status is OAN, and the ARP is Warehouse or Central Warehouse. The Roll Up OAN Usage field, also appears in Product Lines Setup - Ordering and provides the default when you are setting up warehouse products associated with the product line.
If you specify Normal/Trans Usage, the standard system functionality is maintained. In that case, sales and transfer usage is used to calculate usage.
Stock Out Usage Control
- Fix Stock Out Exception
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If you want to correct stock out exceptions, specify Yes. If a 15-day stock-out situation is encountered, the product’s usage for the previous month is loaded into the override usage field. An exception is created for the buyer to review in Product Exception Processing Administration.
If you do not want to correct a stock out exceptions, specify No.
Specify Ignore if you are setting up a warehouse, vendor, or product line replenishment record, and want to use a higher record’s default for this option. The next record in the Product Replenishment Setup hierarchy is used.
- Stock Out Override Reason
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Specify the override reason to use when a stock-out condition is corrected. The override reason is noted along with the exception in Product Exception Processing Administration. These reasons are set up in SA Table Code Value Setup.
Exceptional Usage Control
- Excess Use Override Reason
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Specify the override reason to use when a product’s exceptional usage is overridden. The override reason is noted in Product Exception Processing Administration. These reasons are set up in SA Table Code Value Setup - Usage/Ord Qty Override.
- Fix Exceptional Usage
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If you want to correct exceptional usage using the usage months and usage multiplier, specify Yes. If you correct exceptional usage, an exception is created during Product Administration Month End Processing, but the product is not frozen. The exception can be viewed in the Product Exception Processing Administration.
If you do not want to correct exceptional usage, specify No. Products that experience exceptional usage are frozen. This is the standard system functionality.
Specify Ignoreif you are setting up a warehouse, vendor, or product line replenishment record, and want to use a higher record’s default for this option. The next record in the Product Replenishment Setup hierarchy is used.
- Override Usage Rate Multiplier
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The multiplier to be used with the prior month’s usage to set the current month’s override usage. This factor is used to automatically fix the current month’s usage so that it does not reflect exceptional usage.
If you specify Yes for the Fix Exceptional Usage option and the last month’s usage is greater than the prior number of usage months’ total, then the override usage and override reason are set during Product Administration Month End Processing. The product is not frozen, but an exception is created that can be viewed in Product Exception Processing Administration.
- Number of Months
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The number of months used with the usage multiplier to calculate an override usage amount. Set this value to 5-12 months. The calculation is:
Total Average Prior Months’ Usage * Usage Multiplier = Override Usage - Example:
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Usage Months: 6 Prior 6 Months’ Usage: December – 19 January – 20 February – 25 March – 22 April – 20 May – 18 Total Usage: 124 Current Month’s Usage: June – 128 **EXCEPTIONAL** Total Average Usage: 124 ¸ 6 = 21 Usage Multiplier: 1.10 June’s Override Usage: 1.10 * 21 = 23.1, rounded to 23
Low Usage Control
- Annual Use Minimum
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The minimum annual usage required for this product. If the average annual usage falls below this minimum, the product qualifies as a low usage product. This value must be 6 or less. Setting this to 6, for twelve months, is the equivalent of the half-unit calculation currently used to determine low usage in Product Administration Month End Processing.
- Fix Low Usage
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If you specify Yes and the product qualifies as a low usage product using the average annual usage amount, the current order point, line point, and order quantity are updated with the values in the Cost Matrix. Product Replenishment Setup fixes low usage if the annual usage for the product is less than X. Access the Usage/Cost Matrix window by clicking the button; an exception will also be created when this ordering control is changed. This exception can be reviewed in Product Exception Processing Administration.
See Usage/Cost Matrix.
If you do not want to fix low usage, specify No.
If you are setting up a warehouse, vendor, or product line replenishment record, and want to use a higher record’s default for this option, specify Ignore.
- Low Use Override Reason
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If the product’s ordering controls are corrected due to low usage, an override reason is noted in Product Exception Processing Administration. Specify an override reason. Reasons are set up in SA Table Code Values Setup - Usage/Ord Qty Override.
Seasonal Trending Demand
- Last Year Units
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The minimum number of units required before the seasonal trending calculation is performed. If the units sold last year are less than this number, the calculation does not take place, and the standard seasonality logic is used. The usage for last year is calculated by using an average of the previous year forward the qualifying number of usage months.
If the calculation does not take place, no exception is created. The recommended minimum units is 10.
- Maximum Trend Percentage Limit
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The maximum trending percentage that is allowed when adjusting usage for seasonal trending. If the trend percentage is greater than this maximum, then the trend percentage is adjusted down to the maximum seasonal percentage, and an exception is created during Product Administration Month End Processing. Set this to
100%and no seasonal trend maximum or minimum is applied. - Minimum Trend Percentage Limit
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The minimum trending percentage that is allowed when adjusting usage for seasonal trending. If the trend percentage is less than this minimum, then the trend percentage is adjusted up to the minimum seasonal percentage, and an exception is created during Product Administration Month End Processing.
- Seasonal Trend Expiration Date
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The expiration date for the seasonal trending override. If you do not want to apply an expiration date for all products within this company, warehouse, vendor or product level, leave this blank. You can establish an expiration date at the product level in Warehouse Products Setup - Seasonality. If the current date is greater than this expiration date, the seasonal trending override calculation is not performed.
- This Year Units
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The minimum number of units required before the seasonal trending calculation is performed. If the units sold in the current year are less than this number, the calculation does not take place, and the standard seasonality logic is used. The current year usage is calculated by using an average of the last number of qualifying usage months.
If the calculation does not take place, no exception is created. The recommended minimum units is 10.
- Use Seasonal Trending
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Select Yes to use the seasonal trending demand parameters. If no maximum seasonal percentage is set up in Warehouse Products Setup - Seasonality, and this option is Yes, the parameters specified in this section are used to calculate a seasonal trending value.
If you do not want to apply seasonal trending, specify No.
If you are setting up a warehouse, vendor, or product line replenishment record, and want to use a higher record’s default for this option, specify Ignore. The next record in the Product Replenishment Setup hierarchy is used.