Computing replenishment information

This activity allows you to compute the replenishment details for the parts. Tell me more.

• Select the “Compute Replenishment Information” link under the “Stock Analysis” business component.

The “Compute Replenishment Information” page appears.

The system displays the following:

• Enter the following fields in the “Replenishment Planning Details” group box:

Note: The location must be selected irrespective of the “Computation Level”.

The system displays the following field:

• Enter the following field in the “Part Filters” group box:

Note: You can compute the details only for those parts for which the planning type is set to “Min-Max” or “Reorder Level” in the “Maintain Planning Information” activity of the “Part Administration” business component.

The system displays the following field:

• Enter the following field:

Note: You can select only those part groups for which the “Associate Parts” field is set as “Yes” in the “Create Part Group” activity of the “Part Administration” business component.

Note: If the “Part Group” is selected and the “Part #” is left blank, then the system considers all the prime parts and non–prime parts associated with the prime part, available in the part group for computing the replenishment information.

Note: The “Part Group” will be ignored, if the “Part #” is entered.

• Enter the following field in the “Replenishment Parameter Details” group box:

You may specify the service level for V, E and D classified parts in the following activities. However, the system takes into consideration the service level % for the computation of service level in the order of precedence as listed below:

1) The Part Planning Information activity of the Part Administration component.

2) The Set Replenishment Parameters activity in the current component

3) The current page of the Compute Replenishment activity in the current component

For instance, if the service level is not defined in the Part Planning Information activity, the system considers the service level % defined in the “Set Replenishment Parameters” activity. If the service level % is not defined in the “Set Replenishment Parameters” activity too, the service level specified in the Service Level in % field in this page becomes the basis for computation of the service level. In another instance, if the Service Level is defined in the first two of the activities listed above, the system takes into account, the Service Level available in the Part Planning Information activity for computation.

The system displays the following field:

Note: For the “Service Level in %” entered, the system computes the “Service Level Factor”, based on the “Normal Distribution Table”.

• Enter the following fields:

Note: You may specify the Carrying Cost in % of Std Price in the following activities. However, the system takes into consideration the Carrying Cost in % of Std Price in the order of precedence as listed below:

1) The Part Planning Information activity of the Part Administration component.

2) The Set Replenishment Parameters activity in the current component

3) The current page of the Compute Replenishment activity in the current component

For instance, if the Carrying Cost in % of Std Price is not defined in the Part Planning Information activity, the system looks for the Carrying Cost in % of Std Price defined in the “Set Replenishment Parameters” activity. If the Carrying Cost in % of Std Price is not defined in the “Set Replenishment Parameters” activity too, the Carrying Cost in % of Std Price specified in this page becomes the basis for computation of the carrying cost. In another instance where the Carrying Cost in % of Std Price is defined in the first two of the activities listed above, the system takes into account, the Carrying Cost in % of Std Price available in the Part Planning Information activity for computation of carrying cost.

• Enter the following fields in the “Annual Constants Details” group box:

The lead time for the part is calculated based on the following formula:

Note: The system considers only those goods receipts which are in “Moved” status and purchase orders which are in “Authorized” or “Amended” status.

Note: The “Lead Time Unit” will be ignored, if “Lead Time” is not entered.

Note: The system ensures that the time interval between "From Date" and "To Date" is not greater than or lesser than 365 days.

Note: Ensure that “From Date” and “To Date” are entered for setting the replenishment parameters.

• Enter the following fields in the “Computation Parameters” group box:

Note: The “% Maximum Tolerance” should be greater than the “% Minimum Tolerance”.

Note: To compute “Reorder Level”, the “Safety Stock” must be computed.

Note: Ensure that atleast one check box is selected.

• Select the appropriate “Update Option”, to specify the option for updating the replenishment computation:

Note: This updation is applicable only for parts with planning type set to “Min-Max” in the “Maintain Planning Information” activity of the “Part Administration” business component.

Note: The system updates the reorder level as the minimum quantity for the part, only if the current maximum quantity of the part is greater than the computed quantity.

Note: The system updates the replenishment details in the “Storage Area Administration” business component only if the “Computation Level” is set to “Warehouse”.

• Click the “Compute” pushbutton, to compute the replenishment information.

The system performs the following on clicking the “Compute” pushbutton:

• The system updates the “Computation Status” field as “In Progress” and after computation, to “Computed”

• The system computes the details only for those parts

a) For which the “Computation Level” is the same as the “Replenishment Activity At” field of the “Maintain Planning Information” page in the “Part Administration” business component.

b) With stock status set as other than “Customer Goods”, “Consignment” or “PBH”.

If the “Reorder Qty” field is checked in the “Computation Parameters” group box

• Per order cost, if entered, should be greater than zero.

• Reorder quantity is computed as :

Annual consumption is calculated as given below:

a)       If Forecast Factor is entered:

b)       If the “Annual Consumption” is entered, then the system ignores the “Forecast Factor” for the computation.

Ordering cost, or ‘per order cost’ for a part is calculated as :

Carrying Cost for any part is calculated as:

a)       If the source of the part is set to “Purchase” in the “Part Administration” business component,

b)       If the source of the part is set other than “Purchase” in the “Part Administration” business component,

• “Carrying Cost in % of Std Price” (if entered) should be greater than zero.

Note: For parts with source document type as “Purchase Order”, the carrying cost is calculated based on the standard purchase price for the parts, and for parts with source other than “Purchase Order” the system considers the “Standard Cost” for calculating the carrying cost.

If the “Safety Stock” field is checked in the “Computation Parameters” group box

The safety stock will be calculated as:

If the “Reorder Level” field is checked in the “Computation Parameters” group box

Reorder level is computed as:

Demand during lead time is calculated as:

• Click the “Update” pushbutton, to update the replenishment information.

Note: Ensure that the replenishment information is computed before updating the replenishment details.

The system updates the “Computation Status” field to “Updated”.

The system updates the replenishment details in the “Part Administration” and “Storage Area Administration” business components based on the computation level.

The system displays the following fields in the ”Computation Summary” group box on clicking the “Update” pushbutton:

To proceed, carry out the following

• Select the “Export Replenishment Information to Excel” link at the bottom of the page, to export the replenishment information to Microsoft Excel.

• Select the “Set Replenishment Parameters” link at the bottom of the page, to set the replenishment parameters.

Computing replenishment details – An overview

This page allows you to compute the replenishment details for a part with part classification as “ABC” or “VED” in the inventory. You can compute the replenishment details at the location level or warehouse level.

What you can do in this page

Specify the computation level

Compute and record the replenishment details

Specify the computation level

You can specify the level for computing the replenishment details for the part in the inventory.

• Select the “Computation Level” as “Location” or “Warehouse”.

Compute and record the replenishment details

You can compute and record the replenishment details.

• Click the “Compute” pushbutton to compute the replenishment details.

• Click the “Update” pushbutton, to record the replenishment details.

Prerequisites

• “Create Parts Main Information” activity of the “Part Administration” business component.

• “Maintain Planning Information” acticivity of the “Part Administration” business component.

• “Create Part Group” activity of the “Part Administration” business component.

• ”Create Warehouse Information” activity of the “Storage Administration” business component.

Normal Distribution Table