Setting replenishment parameters
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This activity allows you to set the replenishment parameters for the parts.
Select the “Set Replenishment Parameters” link under the “Stock Analysis” business component.
The “Set Replenishment Parameters” page appears.
The system displays the following field:
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Date Format |
The format in which the date fields are displayed in this page. This format is displayed from the “User Preferences” business component based on the login user ID. In case the format is not defined, the system displays the date format from the “Enterprise Modeling” business component by default. |
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Currency |
The base currency of the login organization unit. |
The system displays the following field in the “Reorder Qty Parameters” multiline:
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Class |
The part classification, which are “A”, “B” and “C” classes. |
Enter the following fields:
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Annual Ordering Cost |
The total annual ordering cost incurred on the part (Integer). Ensure that the cost entered is a positive value and greater than zero. |
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Annual Order Count |
The total number of parts ordered annually (Integer). Ensure that the annual order count is a positive value and greater than zero. |
Note: Ensure that “Annual Ordering Cost” and “Annual Order Count” is not left blank.
The system displays the following field:
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Per Order Cost |
The cost incurred per order for the part, which is calculated as given below: Per Order Cost = Annual Ordering Cost / Annual Order Count |
Enter the following field:
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Carrying Cost In % Of Std Price |
The miscellaneous cost such as the cost incurred for handling hazardous types of parts or breakable parts, entered in terms of percentage of the standard cost of the part (Decimal). |
Enter the following field:
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From Date |
The starting date, in the range of dates based on which the replenishment parameter is valid (Date Format). |
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To Date |
The ending date, in the range of dates during which the replenishment parameter is valid (Date Format). |
Note: Ensure that “From Date” and “To Date” are entered for setting the replenishment parameters.
Note: The time interval between "From Date" and "To Date" must be "365" days.
Click the “Compute Reorder Qty Parameters” pushbutton, to compute the reorder quantity parameters.
The system performs the following on clicking the “Compute Reorder Qty Parameters” pushbutton:
Computes the per order cost for parts belonging to “A”, “B” and “C” class, using the following formula:
Per Order Cost = Annual Ordering Cost / Annual Order Count
Saves the “Carrying Cost in % Of Std Price” along with the “From Date” and “To Date” for the period for which the computation is performed.
The system displays the following in the “Service level Details” multiline:
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Class |
The part classification, which could be “V”, “E” or “D” class. |
Enter the following fields:
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Service Level In % |
The level (in percentage) to which the service has been provided to the MRO for the request of material (Integer). This is calculated as: Number of times the service is provided + Quantity of parts provided to the MRO based on the request _____________________________________________________________________ Total number of times the service is requested + Total quantity of parts requested by the MRO This value can range between “1” and “100”. Ensure that a value is entered in this field. |
The system displays the following field:
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Service Level Factor |
The service level factor (in percentage) that sets a standard to avoid out-of-stock situations for replenishing the order. For example, if the service level factor is 90%, then it indicates that 90% of the time the out-of-stock situation must be avoided for replenishing the order. The system computes this value on clicking the “Compute Service Level Factor” pushbutton. |
Click the “Compute Service Level Factor” pushbutton to compute the service level factor.
The system computes the service level factor and displays it in the “Service Level Factor” field.
Note: For the “Service Level in %” entered, the system computes the “Service Level Factor”, based on the specifications set in the “Normal Distribution Table”.
Click the “Set Parameters” pushbutton to update the replenishment parameters.
The system updates the parameters set for the reorder quantity and service level.
The system performs the following on clicking the “Set Parameters” pushbutton:
Ensures that “Carrying Cost In % Of Std Price” is entered for all the classes of the “ABC Classification”.
Ensures that the details are re-computed, for modified records.
The system displays the following in the “Record Statistics” group box:
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Last Modified By |
The name of the user who last modified the parameters. |
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Last Modified Date |
The date on which the parameters were last modified. |
