jason2.jasonindustrial.com · Next Generation ® Automated Replenishment Release NGS-6.40 ARP - 2 SEASONAL ITEMS PROCESSING

AUTOMATED REPLENISHMENT

Table of Contents

AUTOMATED REPLENISHMENT .................................................................................. 1

INTRO- .....................REPLENISHMENT AND INVENTORY CONTROL INTRODUCTION .................. 4 INTRODUCTION AND OVERVIEW ...................................................................................................... 4 FLOW CHART-......AUTOMATED REPLENISHMENT PROGRAM FLOW .......................................... 5 PROCESS-............AUTOMATED REPLENISHMENT PROCESS ...................................................... 6

REPLENISHMENT PROCESSING PROGRAMS ......................................................... 10

DATA SETUP AND INFORMATION STORAGE TABLE ....................................................................... 10 IPMB- ....................ITEM/BRANCH PLANNING MAINTENANCE PROGRAMError! Bookmark not defined.

GATHERS (SET UP AS CRONS AND RUN NIGHTLY) ........................................................................ 22 GIU- ......................GATHER ITEM USAGE HISTORY ...................................................................... 22 GPH-.....................GATHER PURCHASE HISTORY ........................................................................ 23 GISO- ...................GATHER FOR ITEM STOCKOUTS .................................................................... 24 GIS- ......................GATHER ITEM SALES AND COST OF GOODS ................................................ 25 GAIV- ....................GATHER AVERAGE INVENTORY VALUE ......................................................... 26

FILTERS - IDENTIFYING AND USING FILTERS .................................................................................. 27 IHU- ......................IDENTIFY HIGH USAGE ITEMS ......................................................................... 27 ILU- .......................IDENTIFY LOW USAGE ITEMS .......................................................................... 30 IESO- ....................IDENTIFY EXTENDED STOCKOUT ITEMS ....................................................... 33 ILSA- .....................IDENTIFY IMPACT OF LOST CUSTOMERS ...................................................... 35 ISI- ........................IDENTIFY SEASONAL ITEMS ............................................................................ 37 IIBI- .......................IDENTIFY INACTIVE ITEMS ............................................................................... 40 IABI- .....................IDENTIFY ACTIVE ITEMS ................................................................................... 42

COMPUTE PROGRAMS (SET UP AS CRONS AND RUN MONTHLY) ............................................... 44 CIAU- ....................COMPUTE ITEM AVERAGE USAGE .................................................................. 44 CILT- ....................COMPUTE ITEM LEAD TIME.............................................................................. 47 CSAFE- .................COMPUTE SAFETY ALLOWANCE .................................................................... 50 COP-.....................COMPUTE ORDER POINT ................................................................................. 52 ICPH- ....................COMPUTE PRODUCT LINE PURCHASE HISTORY ......................................... 54 ICRC- ....................COMPUTE PRODUCT LINE REVIEW CYCLE ................................................... 56 ICLP- ....................COMPUTE LINE POINT ...................................................................................... 58 COQ- ....................COMPUTE ORDER QUANTITY .......................................................................... 60 CMIN- ...................COMPUTE MINIMUM LEVEL .............................................................................. 63 CMAX- ..................COMPUTE MAXIMUM LEVEL ............................................................................. 65 ICSL- ....................COMPUTE SURPLUS LEVEL ............................................................................. 68 IMC- ......................ITEM MOVEMENT CLASS .................................................................................. 70 CIT- ......................COMPUTE ITEM TURNOVER RATE .................................................................. 73 CITE- ....................COMPUTE ITEM TURN & EARN RATE ............................................................. 75 CIG- ......................COMPUTE ITEM GROSS MARGIN RETURN ON INVESTMENT (GMROI) ...... 77

PROCESSING PROGRAMS ................................................................................................................... 79 GENERATING REQUISITIONS .......................................................................................................... 79 PURCHASE ORDER REQUISITION PROGRAM - PRGEN ............................................................... 79 PURCHASE ORDER REQUISITION PROGRAM - PRGEN - TRANSFERS ...................................... 85

Next Generation® Automated Replenishment

Release NGS-6.40 ARP - 2

SEASONAL ITEMS PROCESSING ........................................................................................................ 92 INTRODUCTION AND OVERVIEW .................................................................................................... 92 DETERMINING SEASONAL ITEMS ................................................................................................... 92 COMPUTING THE RECOMMEND QUANTITIES TO BUY FOR SEASONAL ITEMS ....................... 93 PURCHASING SEASONAL ITEMS ..................................................................................................... 93 PRGEN- ................PURCHSE REQUISITIONS GENERATION FOR SEASONAL ITEMS ............... 93 SIRA- ....................SEASONAL ITEM REPL. ALERT REPORT ........................................................ 95

MISC. PROGRAMS, REPORTS AND QUERIES ................................................................................... 96 IUTF- ....................UNFREEZE TEMPORARILY FROZEN ITEMS ................................................... 96 IFIR- .....................ITEM FREEZE INDICATOR REPORT ................................................................ 97 ICUT- ....................ITEM CONTROLS AND USAGE QUERY............................................................ 99 MOIH- ...................MOVE OLD ITEM HISTORY TO NEW ITEM .................................................... 101



Proprietary Notice

This manual contains information which is proprietary to Munics Information Systems, Inc. and all rights are reserved. No part of this manual or its contents may be used or reproduced by any means without the express written permission of Munics Information Systems, Inc.

Disclaimer of Warranty The material contained herein is subject to change without notice. Munics Information Systems, Inc. makes no warranty, express, implied or by description, regarding the information set forth herein. Munics Information Systems, Inc. does not guarantee, warrant or make any representation regarding the use of, or the results of the use of, the programs in terms of correctness, accuracy, reliability, currency or otherwise, and the purchaser relies on the programs and the results solely at his/her own risk. NEXT GENERATION® is a registered trademark of Munics Information Systems, Inc.

Copyright 1987-2006

Munics Information Systems, Inc.



INTRO- REPLENISHMENT AND INVENTORY CONTROL INTRODUCTION INTRODUCTION AND OVERVIEW Inventory Management is one of the most important processes that a wholesale distributor must perform. The largest single asset a distributor owns is their Inventory. The Automated Replenishment process will help you decide what to stock, how much to order, and when to order. There are also management reports that will help in controlling the inventory. They will measure inventory-dollar used, identify slow moving or dead inventory and establish disciplines that will result in more accurate inventory balances. The Automated Replenishment Process is a process where the system will calculate a recommended buy quantity based upon parameters established within the system. If an item is replenished from an external vendor the system will normally use the Order Point and Order Quantity to calculate the buy quantity. If the item is replenished from another branch the system will normally use the Minimum and Maximum levels to calculate the buy quantity, If Line Point is being used the system will use the Line Point and the Order Quantity to calculate the buy quantity. There are also several other parameters that will impact the recommended buy quantity. These are Shelf Life, Open PO's, Minimum Vendor Order Quantity, Seasonal Item, and Quantity Per Pack. Next Generation software has programs that can be used to calculate all the necessary data that is used in the Automated Replenishment Process or the user can manually enter the data. The Branch Planning Details Maintenance (IPMB) is the program where the data is stored that is used in this process. The menu labeled Gathers and Filters (IC41) is where the user can find all the programs that will gather each day's activity and put them into other tables by period buckets. The Filter programs are used to weed out items from this process where they meet certain parameters. The menu labeled Inventory Compute (IC42) is where you will find all the compute programs that will compute such data as Average Usage (CIAU) and Order Point (COP). These compute programs will print out a report and will update the appropriate fields in the Branch Planning Detail Maintenance (IPMB) program. After all the parameters are set, the user can run the Auto-Generate Purchase / Transfer Requisitions (PRGEN) which will produce a report (RRAR) and Purchase Requisitions for the recommended buy quantities. The user must first review the report for any changes that need to be made on the requisitions. If there are changes to be made, the changes can be made in program Purchase Requisition Maintenance (REQM). After all the changes are made, the Purchase Requisitions that are to be converted to PO's are approved in program Approve Purchase Requisition (APR). Then program Generate Purchase Orders (POGEN) is run to create PO's for all the approved purchase requisitions and a report, Generated Purchase Orders Report (GPR) is run to print all the PO's that were automatically created.



FLOW CHART- AUTOMATED REPLENISHMENT PROGRAM FLOW

(1)

IM Create Item Record

(2) Create Item Branch

Record (IPMB)

(3) Set up Gathers &

Filters (IC41) menu

(4) Run Compute

Programs in IC42 menu

(5) PRGEN

Auto create reqs to fill sales orders & replenish stock

(7)

REQM Requisition

Maintenance *(Optional)*

(8)

APR Approve / Reject

Purchase Reqs prior to Converting to PO's.

(9)

POGEN Auto Create PO's

from approved reqs.

(11)

POP Purchase Order Print

*(Optional)*

(6) RRAR Print Report of Reqs

Generated *(Optional)*

(10) GPR Print Report of all PO's

Generated *(Optional)*

(12)

OPOR Print report of open Purchase Orders

*(Optional)*

(13)

POR Receive Product against

P.O. Update System

(14)

PORM Maintain / Approve Requisitions and Create P.O.'s This program may be used instead of steps 7,8, & 9.



PROCESS- AUTOMATED REPLENISHMENT PROCESS The general theory of operation for this set of programs is as follows: (01) IM -

CREATE ITEM RECORD

In this program you will create your item id record. There are certain fields that must be entered correctly in order to be use in the Automated Replenishment Process (ARP). The Item Status code (field #15) must be set to either a “1” or “2”. If item is in a product line (ie. Line Buying) then you must enter the product line in field #24.

(02) IPMB - CREATE ITEM BRANCH RECORD

This is the most important program used in Automated Replenishment Process (ARP). - The first screen should be fully entered. You should refer to each field help screens for your options. - The second screen is where you will find all the computed values. - The third screen you will find the freeze indicator and the active code. - The fourth screen is used only if the item is a seasonal item. The Replenishment Path (field #1) must be set to a “1” for items replenished from an external vendor, and, “2” for items replenished from another branch. The Auto Reorder Code (field #2) must be set to a “1” or “2”. The item must be coded as an active item ('A" in field #66). The freeze indicator (field #61) must be set to “N”, which means that you have accumulated six months of usage history. The Prime Vendor ID field #4 also needs to be set up in this program and it must be a valid vendor ID in the Vendor Master Table (VM). (See table below for a list of Key fields that affect Replenishment)

(03) IC41 - GATHERS & FILTERS SET UP AS CRONS FROM MENU

After the item was set up in both the IM and IPMB with the appropriate values; you will need to enter the applicable Gather programs as a cron, which are found in the IC41 menu. The Filter programs are also found in this menu and should be set up as a cron if needed. The program GIU (gather item usage) is the most important one that needs to be set up, this is the program that gathers the daily usage and puts them into buckets by periods. All other gathers depend upon the user environment. (i.e. if they are not using a particular feature the cron job is not required. Gather programs should be set up to run on a nightly basis. The following is a list of gather programs that may be set up to run as cron jobs.

Gather Programs Time Frame Required

/Optional GIU Gather Item Usage History Nightly Required GPH Gather Purchase History Nightly Optional GISO Gather for Item Stockouts Nightly Optional GIS Gather Item Sales & COGS Nightly Optional GAIV Gather Average Inventory Value Nightly Optional

Filters / Identify Programs (These programs will weed out items from the process where they meet certain conditions. all of these programs are optional)

Time Frame Required / Optional

Source Data

IHU – Identify High Usage Item Monthly Before CIAU

Optional GIU



ILU – Identify Low Usage Item Monthly Before CIAU

Optional GIU

IIBI – Identify Inactive Items Monthly Before CIAU

Optional GIU

IABI – Identify Active Items Monthly Before CIAU

Optional GIU

ISI – Identify Seasonal Items Monthly Before CIAU

Optional GIU

ILSA – Identify Impact of Lost Customers

On Demand Optional GIU

IESO – Identify Extended Stockout Item Nightly Optional GISO

Other Programs Time Frame Required / Optional

Source Data

MOIH – Move Old Item History On Demand Optional GIU IUTF – Unfreeze Temp Frozen items Nightly Required GIU

(04) IC42

COMPUTE PROGRAMS SET UP AS CRONS FROM MENU

After the gather programs are set up and running successfully the compute programs need to be set up to run as cron jobs, which are found on the IC42 menu, most are run on a monthly basis. These compute programs will update appropriate fields in the Branch Planning Detail Maintenance (IPMB) program. Not all programs need to be set up to run, it will depend on each customers requirements. The programs MUST be run in the following order to insure accurate calculations.

Compute Programs Time Frame Required /

Optional Source Data

CIAU – Compute Item Average Usage Monthly Required GIU CILT – Compute Item Lead Time (If not manually maintained)

Monthly Required / Manually

PO's recvd

CSAFE – Compute Safety Allowance Monthly Required Formula COP – Compute Order Point Monthly Required Formula * ICPH - Compute Product Line Purchase History

Monthly Optional GPH

* ICRC –Compute Product Line Review Cycle

Monthly Optional Formula

* ICLP –Compute Line Point Monthly Optional Formula COQ – Compute Order Quantity Monthly Required Formula CMIN – Compute Minimum Stock Monthly Optional GIU CMAX – Compute Maximum Stock Monthly Optional GIU ICSL – Compute Surplus Level Nightly Optional Formula IMC – Compute Item Movement Class Monthly

(no cron) Optional Formula

CIT – Compute Item Turnover Rate Weekly Optional GAIV/GIS CITE – Compute Item Turn & Earn % Weekly Optional GAIV/GIS CIG – Compute Item Gross Margin Return on Investment

Weekly Optional GAIV/GIS

* These programs are only required if the Customer is using Product Line Buying

*IMPORTANT SETTINGS* The compute programs will only select items that meet the following conditions: IPMB Freeze Indicator (field 61) is set to an "N", which means you have accumulated six months



of usage history. IPMB Item Active (field 66) ='Y' IPMB Auto Reorder Code (field 2) = '1' or '2' IPMB Replenishment Path (field 1) = '1' or '2'

('1' indicates items are replenished from an external vendor) ('2' indicates items are replenished from another branch)

IM Item Status Code (field 15) = '1' or '2'. The Computed Order Quantity calculation code is used by the Automated Replenishment Process to calculate the recommended buy quantity. This code is based on how an item is set up. For example does the item have Shelf Life value, is there a minimum PO quantity and is there a Product Line value. This code is calculated by program COQ and the code can be found in IPMB field # 57, and can not be changed by a user. This code appears on the RRAR replenishment report.

Compute Order Quantity

List of Calculation Codes for Order Quantity

Code 00 Manually Extended Order Quantity.

01 Based on Economic Order Quantity – Field #1 in IPMB.

02 Based on MIN/MAX setting – Field #’s 46 and 48 in IPMB (CMIN and CMAX Compute

Programs).

03 Based on vendor’s minimum order quantity – Field 23 in IPMB or Field 14 in VIXM.

04 Limited to 12 periods of Usage – Non Seasonal Items - Max # of Periods Qty. to order in COQ.

05 Seasonal item. Limited to 3 periods of usage – Seasonal items – Max # of periods qty. to order in COQ.

06 Limited by Shelf Life – Field # 10 in IPMB.

07 Increased to 0.50 periods of usage – Minimum # of periods qty. to Order in COQ.

08 Increased to Usage Rate times Review Cycle – Field # 8 in IBPL

09 Product Line buying.

10 Quantity based on minimum net cost per unit evaluation break level qty. in VIXM. (05) PRGEN

CREATE PURCHASE REQUISITIONS

This program will produce Purchase Requisitions to fill sales orders and replenish stock. It will also produce a report (RRAR) of all items for which the system has generated a Purchase Requisition.

(06) RRAR PRINT REPORT

RRAR will produce a report of all items for which the system has generated a Purchase Requisition.



OF ALL REQ'S CREATED

*(This step is optional)*

(07) REQM REQUISITION MAINTENANCE

REQM is used to make any changes on the Purchase Requisitions that were created in PRGEN. *(This step is optional)*

(08) APR APPROVE PURCHASE REQUISITIONS

APR is used to approve all purchase requisitions that will be converted into Purchase Orders.

(09) POGEN PURCHASE ORDER GENERATION

This program is used to convert the approved purchase requisitions into purchase orders and will print out a report(GPR) of all created PO’s.

(10) GPR PRINT GENERATED PO REPORT

GPR will print out a report of all created PO's. *(This step is optional)*

(11) POP PURCHASE ORDER PRINT

POP is used to print a copy of all PO's. that were created. *(This step is optional)*

(12) OPOR PRINT REPORT OF OPEN PURCHASE ORDERS

OPOR is used to print out a report of all open PO's. *(This step is optional)*

(13) POR RECEIVE PRODUCT

POR is used to receive products against a P.O. and update the system

(14) PORM PURCHASE ORDER REQUISITION MAINTENANCE

PORM accomplishes all the functions of REQM, APR, and POGEN (steps 7 – 9) in one program. Purchase Requisitions may be maintained, approved and Purchase Orders generated in this program.



REPLENISHMENT PROCESSING PROGRAMS DATA SETUP AND INFORMATION STORAGE TABLE IPMB- ITEM/BRANCH PLANNING MAINTENANCE PROGRAM Introduction The purpose of the Item/Branch Planning Maintenance program is to focus on storing data related to planning and purchasing information for an item by branch. The user has the ability to maintain replenishment paths, transfer paths, safety allowance, minimum stock, order point, line points, surplus levels and maximum stock at the branch level, allowing the user to establish different inventory levels for the same item at different branches. Procedure From the menu, enter "ICMB":

ADD The ADD option is used to enter a new record.

UPDATE The UPDATE option is used to change an existing record(s). When this option is

chosen the user is required to define which record(s) are to be selected for update. The user must enter the appropriate data by which to search the file and then click the OK button to allow the program to search the file for any record(s) meeting the entered search criteria OR click OK to select all customer records.

DUPLICATE The DUPLICATE option is used to duplicate one record to another or in some cases, multiple records can be created based on the program and entering certain and specific criteria. In this particular program, the DUPLICATE option may used to



either duplicate existing branch records to another branch OR to create new branch records. Duplicate Existing Branch Records: -Used to duplicate all items from a specified branch to branch to another branch. -Used to duplicate a single item from one branch to another branch. -Used to duplicate multiple items by using search keys as follows: TAPE* - to duplicate Item ID's that begin with 'TAPE' *TAPE* - to duplicate items that have 'TAPE' anywhere in the Item ID. *TAPE - to duplicate Items ID's that end with 'TAPE' >TAPE - to duplicate Item ID's that are greater than 'TAPE'. <TAPE - to duplicate Item ID's that are less than 'TAPE'. TAPE-125|TAPE-525 - to duplicate individually selected Item ID's. TAPE-125:TAPE-525 - to duplicate a from/through range of Item ID's. Create New Branch Records: -Used to create branch records based on selection from the Item Master table.

QUERY The QUERY option allows the user to display an existing record on the screen with the ability to scroll forward or backward from record to record when more than one record is selected. When this option is chosen the user is required to define which record(s) are to be selected. The user must enter the appropriate data by which to search the file and then click the OK button to allow the program to search the file for any record(s) meeting the entered search criteria OR click OK to select all customer records.

VIEW The VIEW option allows the user to display information on particular record(s) to the screen, printer, hold file or in many cases, to an Excel spreadsheet. When this option is chosen the user is required to define which record(s) are to be selected for viewing. The user must enter the appropriate data by which to search the file and then click the OK button to allow the program to search the file for any record(s) meeting the entered search criteria OR click OK to select all customer records. After selecting the appropriate record(s), the user will have an option to view the records on the screen, printer, or hold file. Enter "S" for screen, "P" for printer, Enter "X" to output to Excel (not all programs have this capability) or "H" for hold file depending on the desired destination of the view.

IMPORT MUNICS INFORMATION SYSTEMS is aware that many of it's customers would like to benefit from being able to import data from spreadsheets directly into their Next-Generation™ database. To address this ability, the Data Import functionality has been added to various applications to allow you, the user, to add new records or update existing records in selected files within the Next-Generation system from Microsoft Excel spreadsheets that meet our formats and requirements. Our upmost concern is maintaining the integrity of your database. Prior to using the Data Import function , we strongly recommend that you have received special training on this product from MUNICS INFORMATION SYSTEMS. The Data Import function is a very powerful tool and we recommend that it should be used only with direct consultation from MUNICS INFORMATION SYSTEMS personnel. We would analyze the data in the spreadsheet that you are planning to import and consult with you regarding our recommendations. Munics' personnel can review the fields you are planning to import, provide you with the proper field names, provide you with field requirements and/or limitations so accurate data will be loaded, provide you with additional fields or tables where you may need to update data, provide you with acceptable excel formatting, review with you the excel features and formats that are not supported, etc. This is to insure that all of the applicable files in the database are updated correctly.



While the Data Import function is a very powerful tool, if it is not used CAUTIOUSLY AND CORRECTLY, this tool can damage the data in your database, possibly beyond repair. Data Import applications have the capability of causing unrecoverable data errors and/or program errors if not used correctly. If you choose to use the Data Import function without Munics' assistance to update records, add records or use any mode that alters data, then you must accept full responsibility for your actions and data. Assistance with and/or use of the Data Import functions is not included in the Next-Generation™ Maintenance Agreement. Any time that Munics' personnel spend assisting the user with the Data Import function or recovering from the use of the Data Import function will be billable on a Time & Material basis at Munics' then current rates. Note that, depending on what users do, it may not be possible to recover data. You must always backup your system prior to doing the Data Import. We recommend putting security on any programs that have an IMPORT function embedded in the program and limit access to very specific users for this tool. HOW TO USE THE IMPORT OPTION. The spreadsheet must contain valid field names in the first row. (Example, when importing Items. The Item ID Field name would be item_id.) The order in which the columns appear in the spreadsheet does not matter. The Type field will indicate what TYPE OF IMPORT is being uploaded to the system such as the item file, the related item file, the item interchange file, the vendor file, etc. The Default field is used to define what DEFAULT RECORD to use for the file type being imported. On some imports, a separate box will appear that will allow for the entry of a specific Vendor, or a Control Number. The File field is for the entry of the input file. By clicking on the folder next to the box, you direct the program to the path and filename of where the excel file is located. Options: Put a check in the box next to any of the following options to turn this feature on. Import New Records - to import just new records Delete and Import - to delete any record that exists and replace it with a new record Update Existing Records - to just update existing records. Keep blank values - if blank exist in the spreadsheet, use these blanks as data. Validate Records - to Validate Records Test Run - to do a test run (nothing will be written out to the system) When finished selecting the options you desire. Click on the Import Button and the program will begin.



EXPORT As the "Import" button is used to create or overlay an existing records from an Excel Spreadsheet. Likewise, the "Export" button will allow you to export records to an Excel™ Spreadsheet. Note: This can be a very useful tool that will allow you to export records from a table in the system (the headings will contain the field names and not the descriptions), then make changes to the records and use the IMPORT option to import those changes back to your system.

LIST The LIST option allows the user to enter their selection criteria and then view all the selected records, with the most important fields listed, on one screen. If the user "double clicks" on any of the records, or highlights a record and clicks the "OK" button, the main edit program is executed and gives the user access to all the fields in the table.

HELP The Help option is used to display the help window.

SET DEFAULT The SET DEFAULT option allows the user to switch editing modes from adding and maintaining REGULAR records to adding and maintaining DEFAULT records. DEFAULT records are templates that may be maintained so that values that are pre-set in the default records are automatically imported to the corresponding "regular" records when adding new records. In some programs multiple DEFAULT records may be set up and maintained, others will only require one default record.

RUN The RUN option is used to temporarily exit the program allowing the user to run another program.

EXIT PROGRAM The EXIT PROGRAM option is used to exit the program Enter a menu option from above then enter the selection criteria: ITEM ID, DESC. XREF

Enter the Item ID. This can also be done by item description or cross reference. Press TAB to select.

U/M

The Unit of Measure for this item will display.

PRODUCT LINE

Enter the Product Line for this item, press TAB to select.

BRANCH

Enter the Branch for this item.



Screen 2:

Screen 3:



Screen 4:

Field Entries Field # FIELD NAME Description 1 REPLENISHMENT PATH Each item in each branch must have a defined replenishment path.

The Replenishment Path indicates the normal, authorized route to replenish an Item. Possible entries are: 0 - Items which do not have a clearly defined route 1 -Items replenished by purchase from external vendors 2 -Items replenished from another branch

2 AUTO REORDER CODE The Auto Reorder Code defines the criterion for deciding whether an Item is to be considered for computation of the Controls such as Average Usage, Order Quantity, Lead Time, etc. by the automated Replenishment system. The possible values that can be entered and their implications are as follows: 0 - This Item WILL NOT be considered for automated Replenishment. In addition to this, the Item WILL NOT be considered for any of the functions which compute Inventory Management Controls such as Average Usage, Lead Time, Order Quantity etc. 1 - This Item WILL be considered for automated Replenishment and for computation of the various Inventory Management Controls.



NOTE: Replenishment path code must NOT be zero. 2 - This Item WILL be considered for automated Replenishment. However, the Item WILL NOT be considered for any of the functions which compute Inventory Management Controls, such as Average Usage, Lead Time, Order Quantity etc. NOTE: Replenishment path code must NOT be zero.

3 BUYER (Buyer) This field stores the Buyer Code for this Item and Branch. The list of valid Buyers can be obtained thru a Look Up window by using the drop down window. Buyers can be maintained using program BUYER.

4 PRIME VENDOR (Prime Vendor) This field stores the Primary Vendor for this Item and Branch. If an Item does not have a Primary Vendor defined for it, the Item will be treated as a Commodity Item. When the system generates a Purchase Requisition for such Commodity Items, they will be listed in a separate report which is for all items without a Primary Vendor. The user will be expected to identify which Vendor the Purchase Order for the item is to be placed with. Vendor will be assigned by the buyer/planner at requisition phase. Vendors can be maintained using program VM.

5 IMC CODE (IMC Code) This field stores the IMC Code (Item Movement Class Code) for this Item and Branch. The Program IMC can be used to rank items and assign an IMC Code to items.

6 LOCATION This field stores the Location for this Item and Branch. The option to update corresponding order detail records with the new value is controlled by acf option inv101.

7 REPLEN. BRANCH (Replen. Branch) This field stores the Replenishing Branch for this Item and Branch. When the Replenishment Path for an Item is '2', which indicates the item is replenished normally by transfers from another branch, this field stores the ID of the Branch which is the normal, authorized branch to replenish this item for the current branch.

8 TRANSFERS ALLOWED The entry in this field defines whether a transfer is allowed from this Branch for this Item. Enter '1' if Transfer is allowed from this Branch for this Item Enter '2' if Transfer is not allowed from this Branch for this Item

9 LOCATION 2 This field stores the Location for this Item and Branch. The option to update corresponding order detail records with the new value is controlled by acf option inv101.

17 P.O. U/M This field stores the P.O. U/M for this Item and Branch. 18 P.O. ALT. U/M This field stores the P.O. Alt. U/M for this Item and Branch. 19 P.O. ALT. CONV. This field stores the conversion factor between the Primary Purchasing

U/M and Alternate Purchasing Unit of measure for this Item and Branch.

20 P.O. COST U/M This field stores the P.O. Cost U/M for this Item and Branch. 21 COST U/M CONV This field stores the Cost U/M Conversion factor for this Item and



Branch. 22 P.O. QTY TO STK CNV This field stores the Conversion between the P.O. Qty to Stocking Qty

Unit of Measure U/M for this Item and Branch. The Purchasing Unit of Measure may be different than the Stocking Unit of Measure. Example: The Purchasing Unit of Measure may be Pallets (Pa) and the Stocking Unit of measure may be in Boxes (BX). The Entry in this field defines how many Boxes make up a Pallet.

31 PERIOD AVERAGE USAGE

This field stores the Average Usage per Period for this Item and Branch. The Average Usage is a vital ingredient of the automated replenishment system and is used in computing most of the other replenishment controls. For new items, it is recommended that the Average Usage be fixed manually by the user. After sufficient Usage History has been built, the program 'CIAU' (Compute Average Usage) may be used to compute the Average Usage per Period for Items.

32 AVERAGE LEAD TIME DAYS

This field stores the Average Lead Time for replenishing this item at this Branch. Lead Time represents the duration (in days) between the placement of Purchase Order for the item and the first receipt against the Purchase Order. The Average Lead Time is an average of the last two Lead Times for this item (the fields 'Last Dlvry LT Days' and 'Prior LT Days' store the last lead time and the lead time prior to the last lead time respectively.) For new Items, it is recommended that the Average Lead Time be fixed manually by the user. After sufficient Purchase History has been built, the program 'CILT' (Compute Item Lead Time) may be used to compute the Lead Time for Items.

33 SAFETY ALLOWANCE %

This field stores the Safety Allowance % to be used to compute the Safety Allowance quantity for an item. The Safety Allowance represents a measured amount of "pad" incorporated into the Order Point calculation to protect against variances in the anticipated Usage Rate or Lead Time. The Safety Allowance % should be manually set by the user. For new items, it is recommended to set the Safety Allowance % at 50.00 %. This may then be adjusted suitably after studying the Usage and Lead Time behavior of the item.

34 SAFETY ALLOWANCE QUANTITY

This field stores the Safety Allowance to be used while computing Order Point for this Item and Branch. The Safety Allowance represents a measured amount of "pad" incorporated into the Order Point calculation to protect against variances in the anticipated Usage rate or Lead Time. The program 'CSAFE' (Compute Safety Allowance) may be used to compute the Safety Allowance for all items. A manual entry can also be made in this field. The Safety Allowance is calculated as follows: Avg. Usg * Avg. LT in Days * (Value entered in the field/100)

35 AVG LT COMPUTE DATE

This field stores the Date on which the Average Lead Time was Computed for this Item and Branch. The 'CILT' program computes the average lead time and stores the



date on which this compute occurs. 36 PRIOR LT COMPUTE DT This field stores Date on which the Lead Time prior to the Last Lead

time was computed for this Item and Branch. 37 PRIOR LT DAYS This field stores the Lead Time Prior to the Last Lead Time for this

Item and Branch. Prior Lead Time is used by the CILT program in the computation of Average Lead Time.

38 LAST DLVRY LT DAYS This field stores Last Delivery Lead Time in Days for this Item and Branch. The Last Delivery Lead Time is used by the CILT program in the Computation of Average Lead Time.

39 LAST LT COMPUTE DT This field stores the Date on which the Last Lead Time for this Item was computed.

40 ORDER POINT LEVEL This field stores the Order Point for this Item and Branch. The Order Point establishes the level of Available Stock at or below which the Replenishment system automatically generates a fresh Purchase Requisition for the Item. Order Point is the recommended order-timing control for items replenished by purchases from external vendors. For new items, it is recommended that the Order Point be fixed manually by the user. After sufficient history is built on usage pattern for the item, the program 'COP' (Compute Order Point) may be used to compute the Order Point for all items.

41 ORDER QUANTITY This field stores the Order Quantity (O.Q.) for this Item and Branch. The Order Quantity represents the optimum quantity to purchase or transfer. For new items, it is recommended that the Order Quantity be fixed manually by the user. After sufficient history has been built, the program 'COQ' (Compute Order Quantity) may be used to compute the Order Quantity for all items. List of Order Quantity Calculation Codes: 00 - Manually Entered Order Quantity 01 - Based on Order Quantity 02 - Based on MIN/MAX Setting 03 - Based on Vendor's Minimum Order Quantity 04 - Limited To xxxx Periods of Usage 05 - Seasonal Item. Limited to yyyy Periods of Usage 06 - Limited By Shelflife 07 - Increased To zzzzz Periods of Usage 08 - Increased to Usage Rate Times Review Cycle 10 - Quantity Based on Minimum Net Cost Per Unit Evaluation

40-41 Replenishment from Vendor uses field 40 & 41 to drive when / how much to order. Replenishment from branches uses min / max quantities to determine when / how much to buy.

42 LINE POINT LEVEL This field stores the Line Point for this Item and Branch. The Line Point is an important Order-timing Control for Items which form part of a Product Line. During the review of a Product Line, the replenishment program takes into account all items whose current available quantity is at or below Line Point. For new Items, it is recommended that the Line Point be fixed manually by the user. After sufficient history has been built, Line Point of an Item can be computed by the 'ICLP' Program.



47 MINIMUM LEVEL QUANTITY

This field stores the Minimum Level for this Item and Branch. The Minimum Level is the order-timing control for items which are replenished through Branch Transfers. User may opt to also use Seasonal Indicators/Periods when determining branch transfer requisitions quantities by setting acf option po094. For new Items, it is recommended that the Minimum Level be fixed manually by the user. After sufficient Usage History has been built, the Minimum Level can be computed by the program 'CMIN'.

48 MAXIMUM LEVEL QUANTITY

This field stores the Maximum Level for this Item and Branch. The Maximum level is an ordering control recommended for use with items supplied from a master warehouse. It is also used as an order-timing control for items which are replenished through Branch Transfers. User may opt to also use Seasonal Indicators/Periods when determining branch transfer requisition quantities by setting acf option po094. For new items, it is recommended that the Maximum Level be fixed manually by the user. After sufficient history is built on usage pattern for the item, the program 'CMAX' (Compute Maximum Level) may be used to compute the Maximum Level for all items.

49 SURPLUS LEVEL QUANTITY

(Surplus Level) This field stores the Surplus Level for this Item and Branch (this is not the surplus quantity) Surplus quantity is inventory above the surplus level and is calculated on the fly. The Surplus Level defines the point above which stock held at a branch is considered to be surplus. The program ICSL may be used to compute the Surplus Level for an Item.

50 ORDER COST This field stores the Ordering Cost for this Item at this Branch. The Ordering Cost, also known as the 'R' Cost, represents the cost involved in going through a replenishment cycle. The Ordering Cost is used in program COQ for computing the Order Quantity for the Item.

52 SHELF LIFE DAYS Enter the Shelf Life (in Days) for the Item. Used as an outer fence to apply when calculating order quantity.

57 ORDER QT CALC METH CODE

Updated by system. Tells user what was used to arrive at Order Quantity. (field 41)

61 FREEZE INDICATOR This field stores the Freeze Indicator Code for this Item and Branch. The Freeze Indicator indicates whether an item is frozen or not. Following are the possible values of the Freeze Indicator: P - The controls are frozen Permanently T - The controls are frozen Temporarily N - The controls are not Frozen When the controls are frozen, either permanently or temporarily, the



user is also expected to enter a Freeze Reason Code. In addition to this, when controls are frozen temporarily, the user is expected to enter the duration (in days) for which the controls for the item are to be frozen.

62 FREEZE DATE This field stores the Date on which the item was frozen. 63 FREEZE REASON This field stores the Freeze Reason for this Item and Branch. The

Freeze Reason lookup window can be activated by using the drop down window. Codes entered in this field will be validated for correct entries.

64 # OF DAY FRZ This field stores the Freeze Period (in days) for this Item and Branch. The item will be frozen for the number of days given in this field starting from the Freeze Date.

65 FROZEN BY This field stores the Login ID of the user who froze the Item. If the Item is frozen by a program such as the IHU, ILU, etc., this field is set to 'SYSTEM'.

66 ITEM ACTIVE? Enter 'Y' if the Item is Active. Enter 'N' if the Item is Inactive.

67 INACTIVE DATE This field stores the date from which an item has been inactive. 69 DATE CREATED Enter Creation Date of this Item-Branch Record.

A few programs utilize this date to determine if the item has been stocked long enough to be included in the compute algorithm.

77 FO LEAD TIME OF SAFETY DAYS

Enter the Future Order Lead Time Safety Days. The entry in this field defines the lead time for future orders. Used in ORDER program as part of the calculation when a Future Order can be released.

78 PICK LEAD TIME Enter the Number of days it takes to pick the item from the inventory sufficiently in advance to pack and ship it to the customer. Used in Order program as part of the picking days lead time required.

92 TREND % This field stores the Trend % for this Item and Branch. The Trend %, which is mainly relevant for seasonal items, indicates the percentage of growth or decline in business of that Item. The Trend % is used while computing the Average Usage for seasonal items.

93 SEASONAL INDICATOR This field stores the Seasonal Indicator for this Item and Branch. Leave blank if not seasonal Enter 'SS' if the Item is seasonal and has a Single Season. Enter 'TS' if the Item is seasonal and has Two Seasons. Enter 'OT' if the Item is a One-Time Purchase Item. NOTE: Based on value of acf option po094, this field may also be used to determine whether or not an item should be included when creating branch transfer requisitions.

94 MAY BE SEASONAL This field stores an indicator as to whether an item is found to exhibit seasonal behavior. Possible values are: Y - This items exhibits seasonal behavior and hence may be seasonal. N - This item does not exhibit seasonal behavior.

95 I SEASON START PERIOD

This field stores the Season Start Period for the First Season for this Item and Branch.

96 I SEASON END PERIOD This field stores the Season End Period for the First Season for this



Item and Branch. 97 I SEAS PURCH ST

PERIOD This field stores the Season Purchase Start Period for the First Season for this Item and Branch.

98 I SEAS PURCH END PERIOD

This field stores the Season Purchase End Period for the First Season for this Item and Branch.

99 I SEASON START PERIOD

This field stores the Season Start Period for the Second Season for this Item and Branch.

100 II SEASON END PERIOD This field stores the Season End Period for the Second Season for this Item and Branch.

101 II SEAS PURCH ST PERIOD

This field stores the Season Purchase Start Period for the Second Season for this Item and Branch.

102 II SEAS PURCH END PERIOD

This field stores the Season Purchase End Period for the Second Season for this Item and Branch.

The computed Order Quantity calculation code is used by the Automated Replenishment Process to calculate the recommended buy quantity. This code is based on how an item is set up. For example, does the item have a Shelf Life value? Is there a minimum PO quantity? Is there a Product Line value? This code is calculated by the COQ program. The code is stored in the IPMB program field # 57, and can not be changed by the user. This coded appears on the RRAR replenishment report. Compute Order Quantity List of Calculation Codes for Order Quantity Code Description 00 Manually Extended Order Quantity. 01 Based on Economic Order Quantity – Field # 1 in IPMB 02 Based on MIN/MAX setting – fields 46 & 48 in IPMB

(CMIN and CMAX Compute Programs) 03 Based on vendor's minimum order quantity – Field 23 in IPMB or Field 14 in

VIXM. 04 Limited to 12 periods of Usage – Non Season Items – Max # of Periods Quantity

to order in COQ. 05 Seasonal item. Limited to 3 periods of usage – Seasonal items – Max # of

Periods Quantity to order in COQ. 06 Limited by Shelf Life – Field # 10 in IPMB. 07 Increased to 0.50 periods of usage – Minimum # of periods quantity to order in

COQ. 08 Increased to Usage Rate Time Renew Cycle – Field # 42 in IPMB 09 Product Line buying. 10 Quantity based on minimum net cost per unit evaluation break level quantity in

VIXM.



GATHERS (SET UP AS CRONS AND RUN NIGHTLY) GIU- GATHER ITEM USAGE HISTORY Introduction The Gather Item Usage program serves the function of gathering the inventory usage by individual transaction type from the inventory transaction detail table for each history accumulation period. This function can be performed in batch mode and is suited to being executed as a CRON job which will process as scheduled by the user to gather usage details. However, options exist to carry out the program on demand. Program IURM controls the impact of item transaction being gathered and how they will affect usage. Procedure From the menu, enter "GIU":

Enter Y if all the transactions are to be processed, or N if the conditions for selecting the transactions are to be specified. Enter G if the processing is to be done online. If this is selected the terminal will be locked during the processing. No more information will be prompted for and the processing will begin immediately. Enter C if the processing is to be done in the background and at a later time. The CRONM program will be accessed and by using the Cron Job Table Maintenance screen the user can specify the details.



GPH- GATHER PURCHASE HISTORY Introduction The Gather Purchase History program serves the purpose of saving purchase quantities and values into the Item Usage History table (itu). The transaction types are Z8 for value and Z9 for quantity. Z9 records are stored in the stocking U/M. These values are gathered from the P.O. Receiving Transaction table (portran). The ICPH program utilizes this summary data to calculate purchase history by product line. The product line purchase history saves quantity and value. The quantity is utilized to calculate weight and volume history for that product line. Procedure From the menu, enter "GPH":

Enter Y if all the transactions are to be processed, or N if the conditions for selecting the transactions are to be specified. Enter G if the processing is to be done online. If this is selected the terminal will be locked during the processing. No more information will be prompted for and the processing will begin immediately. Enter C if the processing is to be done in the background and at a later time. The CRONM program will be accessed and by using the Cron Job Table Maintenance screen the user can specify the details.



GISO- GATHER FOR ITEM STOCKOUTS Introduction The GISO program gathers information regarding Stockout situations by scanning the Item's Branch record. Stockout details of items are maintained in the 'istoh' table. This table maintains one row for each stockout incident. In this context, an item is said to be out of stock when the Available for Sale quantity falls to or below zero. The stockout is ended when the Available for Sale quantity is again restored to a level above zero. (The Available for Sale quantity is determined based on the rules maintained in ACF Option inv056) The 'istoh' table maintains two flags whose functions are described below: status_istoh: This flag maintains the status of the stockout situation. The possible values are: 1 - The Stockout is still Open (i.e. the item is still out of stock) 2 - The Stockout is Closed gthr_istoh: This flag maintains the Gather status of this row. The possible values are: 1 - The Stockout History information from this record has not yet been

gathered and posted into the corresponding itu row. 2 - The Stockout History information has been partially gathered and

posted to the itu row. (This situation can occur when a stockout situation extends for a long period of time. In these cases, the Date field gthrdt_istoh maintains the date up to which information has been gathered.)

3 - The Stockout History information has been fully gathered and posted to the itu row.

Procedure From the menu, enter "GISO":

Enter Y to process all items, or N to specify conditions for selecting the Items to be processed. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions: - Item is active - Item status is not 3 or 4



GIS- GATHER ITEM SALES AND COST OF GOODS Introduction The Gather Item Sales and Cost of Goods from Stock to Periodic Item Average Inventory History program serves the purpose of saving sales and cost of goods values into the item average inventory table (iavgval) by branch by item. The program gathers only sales and cost of goods that affected stock inventory. The program gathers data from the S/A detail table (sadet) for the proper transaction affecting stock. (IN,CM,DA,CA) Program also tracks cost of goods on branch transfer sales. (TI,TC) These values combined with average inventory values offer the ability to perform inventory algorithms such as turnover rates, turn and earn ratios and gross margin return on investment. Procedure From the menu, enter "GIS":

A window will open showing the gathering process.



GAIV- GATHER AVERAGE INVENTORY VALUE Introduction The Gather Average Inventory Value program serves the purpose of saving inventory values in the Item Average Value Table (iavgval) by branch by item. This program should be run at least once per inventory period and may be run daily or weekly if desired. The goal of the program is to take snapshots of the inventory at various points in an inventory period. Average periodic inventories are needed in order to calculate various turnover algorithms such as inventory turns, turn and earn ratios and gross margin return on investment. Procedure From the menu, enter "GAIV":

A window will open showing the gather process.



FILTERS - IDENTIFYING AND USING FILTERS The system allows the user to exclude certain items being considered as usage for the purpose of replenishment. These are known as filters and can be identified automatically through the series of programs that follows. IHU- IDENTIFY HIGH USAGE ITEMS Introduction This program serves the purpose of analyzing the usage history of items in order to identify items which have unusually high usage. HU = High Usage is any item where a periods usage is greater than or equal to the preceding 5 periods. Example: JAN FEB MAR APR MAY JUN 50 40 55 45 50 300* * = Freeze Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions: • Value of freeze indicator is N • Item is active • Item status is not 3 or 4 • Seasonal indicator is blank (i.e. the item is not seasonal) Only items with unit cost greater than the user specified minimum unit cost will be analyzed. Within the usage history of any selected item, history figures which are below the user specified minimum quantity will not be considered. Only usage history between the start and end dates specified by the user will be considered for analysis. For each period's usage, the program will sum up the usage history of the specified number of periods of previous history and perform a comparison. If the usage of the period exceeds the sum of the usage of the preceding usage history, then that period qualifies as high usage. When the option to update the item for high usage is chosen, the program will carry out the following updates:

• A temporary freeze will be applied on the item with a Freeze Reason Code of HU. (HU stands for High Usage) The freeze will be for a period sufficient to avoid the period's usage from being used in the computation of replenishment controls.

• The usage history of the concerned period which is identified as unusually high will be locked by setting the lock flag to Y. Subsequently, when an override usage is provided for this period, the lock flag will be reset to N.

If an item is frozen as described above, the following implications will apply:

• The item will not be considered by any of the programs which recompute replenishment controls. • The item will not be considered by analysis programs such as ISI, IHU, ILU, IESO, ILSA.

All temporarily frozen items will be automatically unfrozen by the IUTF program at the expiration of the freeze period. The IFIR program can be used at any time to print a list of frozen items for review.



To unfreeze an item before the expiration of the freeze period, the user should maintain the usage history of the item using the IUHM program in order to provide an override usage for the period identified with high usage. After carrying out this operation, the user may proceed to unfreeze the item using the IPMB program. Procedure From the menu, enter "IHU":

Enter the number of consecutive previous periods of usage history to be summed up for comparison with the usage history of a particular period in order to determine whether the usage of that period was unusually high. The recommended value for this field is 5 when the period is a month. Example: If 5 is entered in this field, the program will compare the usage for a period with the sum of the usage in the previous five periods. If the usage for the period is greater than the sum of the usage in the previous five periods, then the usage for the concerned period is considered to be high. Example: Month : Jul Aug Sep Oct Nov Dec Usage : 30 23 12 56 25 185 The usage in the month of December is 185 which is greater than the sum of the usage in the

months from Jul - Nov. Therefore, the usage in the month of December would be considered to be high.

Enter the minimum usage in a period. Only usage history which is higher than the entered minimum usage will be considered for high usage analysis. Enter the minimum item unit cost. Only items whose unit cost exceeds the minimum unit cost will be considered for high usage analysis.



Select the processing and sort options:

Select the processing options as follows:

1 Select to recompute values and print a comparative report showing the values as existing currently in the database and the newly computed value for the same item. No update is available for this selection.

2 Select to recompute values, print the comparative report and optionally update the database with the

newly computed values.



ILU- IDENTIFY LOW USAGE ITEMS Introduction This program serves the purpose of analyzing the usage history of items in order to identify items which have low usage. LU = Low Usage are usually items with sales of 6 or less units per year. Example: JAN FEB MAR APR MAY JUN 1* 0* 1* 1* 1* 0* Item must be frozen * Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Item status is not 3 or 4 • Seasonal indicator is blank (i.e. The item is not seasonal)

The program will use the minimum annual usage level entered by the user to arrive at a minimum average usage level. This will be compared with the average usage of the item in the preceding year. All items whose usage in the preceding year falls below the specified minimum average usage level will be classified as low usage items. When the option to update the item for low usage is chosen, the program will carry out the following updates:

• A permanent freeze will be applied on the item with a freeze reason code of LU. (LU stands for low usage)

If an item is frozen as described above, the following implications need to be considered:

• The item will not be considered by any of the programs which recompute replenishment controls.

• The item will not be considered by analysis programs such as ISI, IHU, ILU, IESO, ILSA. • It is recommended that all replenishment controls for low usage items be manually set to

desired values by the user. The IFIR program can be used at any time to print a list of frozen items for review. The user may unfreeze an item which is currently frozen for low usage using the IPMB program. It is recommended that sufficient review and study of usage pattern be carried out before unfreezing a low usage item.



Procedure From the menu, enter "ILU":

Enter an annual usage level below which an item is to be classified as a low usage item. Enter the processing and sort options:





2. Select to recompute values, print the comparative report and optionally update the database with

the newly computed values.



IESO- IDENTIFY EXTENDED STOCKOUT ITEMS Introduction This program serves the purpose of analyzing the Stockout History of Items in order to identify items which have suffered extended stockouts within a period. ES = Extended Stock-out are items which have not been available for sale for two weeks. Example: JAN FEB MAR APR MAY JUN 50 40 60 50 50 10* * = Freeze Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Item status is not 3 or 4

Only stockout history between the start and end dates specified by the user will be considered for analysis. A stockout situation is said to have occurred on an item when the Available for Sale balance on the item drops to zero. The GISO program is used to gather the stockout history of an item. This program keeps track of the date from when an item is out of stock to the date when the item's Available for Sale balance becomes greater than zero. If an item has multiple situations of stockout in a period, the GISO program tracks each such situation and creates an overall figure of the total number of days that the item was out of stock in a period. An extended stockout situation is said to exist for an item in a period when the number of Stockout Days in the period equals or exceeds the number of days specified by the user. When the option to update the item for extended stockouts is chosen, the program will carry out the following updates:

• A temporary freeze will be applied on the item with a Freeze Reason code of ES. (ES stands for Extended Stockout) The freeze will be for a period sufficient to avoid the period's usage from being used in the computation of Replenishment Controls.

• The usage history of the concerned period which has an extended stockout will be locked by setting the Lock Flag to Y. Subsequently, when an Override Usage is provided for this period, the Lock Flag will be reset to N.

If an item is frozen as described above, the following implications need to be considered:

• The item will not be considered by any of the programs which recompute Replenishment Controls.

• The item will not be considered by analysis programs such as ISI, IHU, ILU, IESO, ILSA. All temporarily frozen items will be automatically unfrozen by the IUTF program at the expiration of the freeze period. The IFIR program can be used at any time to print a list of frozen items for review.



To unfreeze an item before the expiration of the freeze period, maintain the usage history of the item using the IUHM program in order to provide an override usage for the period identified with extended stockout. After carrying out this operation, the user may proceed to unfreeze the item using the IPMB program. Procedure From the menu, enter "IESO":








ILSA- IDENTIFY IMPACT OF LOST CUSTOMERS Introduction The Identify Impact of Lost Customers program serves the purpose of analyzing the impact of lost customers on the usage history of items. Since the usage history of an item forms the basis for the computation of various Replenishment Controls, this provides a means to adjust the usage history in line with changing customer needs. ILS = Impact of Lost Sales - reduces usage by amount customer has purchased. Example: JAN FEB MAR APR MAY JUN 50 40 70 30 80 60 30 20 40 20 50 40 Lost 20 20 30 10 30 20 Usage Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Item status is not 3 or 4

Based on the details provided by the user, the program will analyze the past usage from the specified customer for all selected items during the analysis period. The program will then compute an override usage for each of the analyzed periods by subtracting the usage of the item to this customer from the actual usage for the period, or override usage if the period's history has already been overridden. If the option to update the usage history is chosen, the program will update all affected usage history records as follows:

• The usage to the customer for the period will be subtracted from the actual usage, or override usage if one exists, to arrive at the override usage.

• The usage history record for the period will be updated by setting the override usage to the figure computed as above.

• The Usage History Disqualification Code will be set to LS.



Procedure From the menu, enter "ILSA":




newly computed values. Select the sort options:



ISI- IDENTIFY SEASONAL ITEMS Introduction This program serves the purpose of analyzing the usage history of items in order to identify items with seasonal behavior. SI = Seasonal Item - items whose sales within 6 months represent 80% of yearly sales. Example: JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 4 4 3 3 3 3 15* 15* 15* 15* 10* 10* * Identifies this may be a seasonal item When looking at usage - use like period last year + trend % Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Item status is not 3 or 4 • Seasonal indicator is blank (i.e. The item is not seasonal)

The program uses the following details provided by the user to identify seasonal behavior:

• Number of consecutive periods to analyze for identifying seasonal behavior • Percentage of annual activity to qualify for seasonal behavior • Minimum number of periods item must have been stocked • Minimum annual usage

The program will exclude all items which have been stocked for less than the specified minimum number of periods. For this, the program will compare the created date of the item's branch record with the current terminal date. The program will exclude all items whose annual usage falls below the specified minimum level. For each selected item, the program will analyze the usage history as follows:

• The program will compute the sum of the usage history for the specified number of consecutive periods.

• The above sum as a percentage of the annual usage will then be computed If the percentage as computed above exceeds the user specified percentage, the item will qualify as an item exhibiting seasonal behavior. If the option to update the items for seasonal behavior is chosen, the program will set the value of the 'May Be Seasonal' flag for all identified items to Y. It is recommended that a thorough review of the identified items be carried out to determine if these items are to be flagged as seasonal. The IPMB program may be used at any time to flag an item as seasonal by setting the seasonal indicator to the appropriate code.



Procedure From the menu, enter "ISI":










IIBI- IDENTIFY INACTIVE ITEMS Introduction This program serves the purpose of identifying branch items which have remained inactive beyond a specified period. Inactive items are those which satisfy the following conditions:

• The last activity date is equal or earlier than the user specified date. • The value of all balance fields given below in the item's branch records are found to be

zero: On Hand Committed On Order Intransit Qty Backordered Transfer Sales Orders Transfer On Order Drop Ship Sales Orders Drop Ship On Order Commit Level 1 Commit Level 2 The program provides the option to print a report on the items which satisfy the above conditions. Optionally, the program can be used to flag all identified items as inactive. If flagged in this manner, these items will be excluded from all inventory management operations such as computation of replenishment controls, auto-reordering, etc. Procedure From the menu, enter "IIBI":






2. Select to recompute values, print the comparative report and optionally update the database with

the newly computed values.



IABI- IDENTIFY ACTIVE ITEMS Introduction This program serves the purpose of identifying branch items which are currently flagged as inactive but have become active again. The program identifies items which satisfy the following conditions:

• The item is currently flagged as inactive. • The last activity date is later than the user specified date. • The value of one or more of the balance fields given below in the Item's Branch records are

found to be non-zero: On Hand Committed On Order Intransit Qty Backordered Transfer Sales Orders Transfer On Order Drop Ship Sales Orders Drop Ship On Order Commit Level 1 Commit Level 2

• The Freeze Indicator of the item is N, (the item is not frozen). The program provides the option to print a report on the items which satisfy the above conditions. Optionally, the program can be used to flag all identified items as active. If flagged in this manner, these items will once again be included in all inventory management operations such as Computation of Replenishment Controls, Auto-reordering, etc.

Procedure From the menu, enter "IABI":










COMPUTE PROGRAMS (SET UP AS CRONS AND RUN MONTHLY) CIAU- COMPUTE ITEM AVERAGE USAGE Introduction The Compute Item Average Usage program serves the purpose of computing the average usage for each item at each branch in which the item is stocked. The program uses the most recent usage history available for each item to arrive at the average usage for the item. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Auto Reorder Code is 1 • Item status is not 3 or 4

Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. Sufficient usage history is required for the program to compute the Average Usage for an item. Sufficient history is determined by the date created in the Item's Branch record. Procedure From the menu, enter "CIAU":



After the selection options are entered, enter the processing date. The system will use the entered date and the inventory usage calendar to arrive at the current period. The system will then arrive at the periods of past usage history to consider for arriving at the average usage as follows: For non-seasonal items, the system will work backwards from the current period and consider the immediate past usage history. For seasonal items, the system will go backwards by one year and consider the usage history of the periods of the last year which correspond to the periods immediately ahead of the current period. Example: If the processing date is 04/15/1993, which falls in period 4 of the year 1993:

- for non-seasonal items, the system will use the usage history starting with period 3 of 1993 and stepping backwards for as many periods as specified by the user.

- for seasonal items, the system will use the usage history starting with

period 4 of 1992 and stepping forward by the number of periods specified by the user.

The user is reminded to update the history prior to processing:




Select processing option 1 to recompute values and print a comparative report showing the values as existing currently in the database and the newly computed value for the same item. No update is available for this selection. Select processing option 2 to recompute values, print the comparative report and optionally update the database with the newly computed values.



CILT- COMPUTE ITEM LEAD TIME Introduction The Compute Item Lead Time program serves the purpose of computing the average lead time for purchase of each item for each branch in which the item is stocked. The program uses data from the most recent purchase orders for each item to compute the lead time. ACF options define parameters that will freeze items where the lead time calculated exceeds the defined parameters. User should monitor these parameters closely to insure only desired items are frozen for replenishment activity. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:


Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. The Average Lead Time in the Item's Branch record at any given time is the average of the last computed lead time and the lead time prior to the last computed lead time. When the CILT program is used to compute a new Average Lead Time, the program uses information from the most recent purchase orders for the item at that branch to arrive at a New Lead Time. The program then arrives at a New Average Lead Time by computing the average of the New Lead Time and the Last Lead Time. A Lead Time Variance is said to exist if the variation between the New Average Lead Time and the Average Lead Time exceeds a predefined percentage. (The percentage is defined in ACF Option 'inv039'). This check will be applied in all cases where the New Average Lead Time exceeds a predefined number of days. The minimum number of days for Lead Time Variance Check is defined in ACF Option 'inv040'. If the option to update the items is chosen and the program detects Lead Time Variance in an item, the program will apply a permanent freeze on the item. The Freeze Reason code will be set to LV. If an item is frozen as described above, the following implications need to be considered:

• The item will not be considered by any of the programs which recompute Replenishment Controls.

• The item will not be considered by analysis programs such as ISI, IHU, ILU, IESO, ILSA. • It is recommended that the Replenishment Controls for the item be manually set to desired

values. The IFIR program can be used at any time to print a list of Frozen Items for review. To unfreeze an item which is currently frozen for Lead Time Variance, use the IPMB program. It is recommended that sufficient review and study of Lead Time pattern be carried out before unfreezing an item with Lead Time Variance.



Procedure From the menu, enter "CILT":

Enter the number of purchase orders to be considered for computing lead time. The system will search for the most recent purchase orders for each item at the concerned branch. The analysis will look at the purchase history table (portran) and sort the records by descending sequence of P.O. date. For each purchase order, the system will compute the lead time as the # of days between P.O. date and the date of first receipt of the item. The system will arrive at the new lead time for the item by averaging the lead times from the selected recent purchase orders. Enter the processing and sort options:







Update option in this program may freeze items. Please read help closely prior to running update.



CSAFE- COMPUTE SAFETY ALLOWANCE Introduction The purpose of the Compute Safety Allowance program is to calculate a safety stock for an item. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:


Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. Procedure From the menu, enter "CSAFE":

After entering the selection criteria the system will prompt for the compute options. Enter the percentage figure to be used to compute the safety allowance. The entered figure will be applied to the product of the average usage and the lead time to arrive at the safety allowance. Example: For 50% Safety Allowance, enter 50




Enter the processing options as follows: Select the processing options as follows:



newly computed values. PROMPT: Select (S)creen, (P)rinter, (H)old, (C)ron or (E)xit



COP- COMPUTE ORDER POINT Introduction The Compute Order Point program serves the purpose of computing the order point for each item at each branch in which the item is stocked. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:


Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. Procedure From the menu, enter "COP":

Select the compute options as follows: Select to compute the order point based on average usage and lead time, with an added safety allowance.

Order Point = Average Usage x Lead Time + Safety Allowance Order Point Consists of: Enough material (usage rate) to accommodate customers During the time required to get more stock (lead time) Plus a measured amount of “pad” (safety stock)










ICPH- COMPUTE PRODUCT LINE PURCHASE HISTORY Introduction The Compute Product Line Purchase History program serves the purpose of computing the Purchase History of Product Lines at selected branches and optionally updating the Branch Product Line Master with the newly computed Annual Purchase History. The program uses details gathered into the 'itu' file (record types Z8 and Z9) for all stock items which form part of a product line at a branch in order to arrive at the Annual Purchase History. The number of periods to be used for computing the Purchase History should equal the number of periods in a year in order to result in computing the Annual Purchase History. In the case of seasonal product lines, the purchases during the active season or off-season may be computed from information relating to two seasons. Example: If the season is from March to August, and the compute is done with starting period as June, the program will take part of the season's purchase information from the recent past, while the rest of information will be from the previous year's purchase history.

The following steps are used to compute the Annual Purchase Weight and Volume: 1.

The Annual Purchase quantity of each item is first computed by summing the quantities in each period as available in the Z9 type records of the 'itu' file. This quantity is in the Stocking Unit of Measure.

2.

The quantities as computed in the previous step are converted to PO Unit of Measure.

3.

The quantity in PO Unit of Measure is multiplied by the PO Unit Weight to arrive at the Annual PO weight.

4.

The quantity in PO Unit of Measure is multiplied by the PO Unit Volume to arrive at the Annual PO Volume.



Procedure From the menu, enter "ICPH":








ICRC- COMPUTE PRODUCT LINE REVIEW CYCLE Introduction The Compute Review Cycle program serves the purpose of computing the Review Cycle and the number of days between reviews for product lines at each branch. The method used for computing the review cycle and review days is dependent upon whether a product line is seasonal or non-seasonal. FOR NON-SEASONAL PRODUCT LINES: Rev. Cycles per Year = Total Actual YTD Prod. Line Purchases in Target UOM Total PO Target defined for the Product Line Number of Days between Reviews = _________365_________ Review Cycles per Year FOR SEASONAL PRODUCT LINES: Seasonal product lines require two separate review cycles to be computed, one for the active season and the other for the off-season: Rev. Cy. Active Season = Total Purchases for the Active Season Total PO Target defined for the Product Line Rev. Cy. Off-season = Total Purchases for the Off-Season Total PO Target defined for the Product Line No. of Days between Reviews = No. of Days in Active Season (for Active Season) Review Cycles for Active Season No. of Days between Reviews = No. of Days in Off-Season (for Off-Season) Review Cycles for Off-Season The PO Target Unit for the product line will determine the unit in which the Total Purchases figure is used to arrive at the review cycles. Example: If the PO Target Unit is 1 (By Value), the review cycle will be computed using the Total Annual Value of Purchases. For seasonal product lines, the duration of the Active Season and the Off-season for the purposes of review cycle computation will be based on the details provided for the following fields: - Purchasing Start Period for the Season - Purchasing Ending Period for the Season



Procedure From the menu, enter "ICRC":







ICLP- COMPUTE LINE POINT Introduction This Compute Line Point program serves the purpose of computing the line point for items which form part of a product line. The line point is a replenishment-timing control point for all stock items in a product line where line buying is required. The line point establishes the upper limit for an item to be included in a purchase order. Apart from the selection criteria provided by the user, this program will only select Items which satisfy the following conditions:

• Value of freeze indicator is N • Item is active • Replenishment path code is 1 • Auto reorder code is 1 • Item status is not 3 or 4

Update of item branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. The method of computing the line point is dependent upon whether the product line is non-seasonal or seasonal. NON-SEASONAL PRODUCT LINES: Line Point = Order Point + (Average Usage/Period * Days between Reviews) # of Days per period SEASONAL PRODUCT LINES: Seasonal product lines require the review cycle to be switched depending upon whether the line point is being computed during the active season or the off-season. Thus, depending upon when the line point is being computed, the number of days between reviews will be switched. Line Point Items are: Items which do not meet a suppliers requirement on a stand-alone basis Minimum PO quantity Minimum PO dollar purchase Minimum PO weight or volume Line Point = O.P. + ( Avg. Usage/Period * Rev. days for Active Season) (in Active season) # of Days per period Line Point = O.P. + ( Avg. Usage/Period * Rev. days for Off-season) (in Off-season) # of Days per period



Procedure From the menu, enter "ICLP":

Enter the processing and sort options:







COQ- COMPUTE ORDER QUANTITY Introduction The Compute Order Quantity program serves the purpose of computing the order quantity for each item at each branch in which the item is stocked. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:


Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. The computation of order quantity is dependent upon the seasonal indicator and Replenishment Path for the item at that branch. For items with a seasonal indicator of SS, the order quantity is computed as the sum of the usage of the item in corresponding x periods from the last year where the value of x is specified by the user. The sum of the usage is multiplied by the Trend % to account for Growth or Decline in business for the item. For items with Replenishment Path of 1, if the item has a Vendor-Item Xref record for the primary vendor with price breaks, the computation of order quantity is based upon arriving at the least Net Cost per Unit and thereby arriving at the best quantity to purchase. For items with no price breaks defined, the order quantity is computed using the Economic Order Quantity (EOQ) formula: EOQ = Square Root of (2 * No. of periods/year * Order Cost * Avg. Usage) (Carrying Cost * Unit Cost) For items with Replenishment Path of 2, the order quantity is computed as the difference between the maximum level and the minimum level. After computing the order quantity in one of the above ways, the program will apply Fences to the order quantity in order to restrict the quantity within reasonable limits. The Fences may be broadly classified as Outer Quantity Fences and Inner Quantity Fences. If the Computed Order Quantity exceeds any of the Outer Quantity Fences, the order quantity will be restricted to the corresponding Fence Quantity. Similarly, if the Order Quantity falls below any of the Inner Quantity Fences, the Order Quantity will be increased to the corresponding Fence Quantity. For seasonal items, a separate Outer Quantity Fence is used to restrict the order quantity. The value of this Fence is based on the number of periods entered by the user for this Fence. If Shelf Life limits have been set for the item, the order quantity will be restricted to the quantity based on the normal usage during the Shelf Life period. For Non-seasonal items, the Outer Quantity Fence is arrived at based on the number of periods entered by the user for this Fence.



Similar to seasonal items, if Shelf Life limits have been set for the item, the order quantity will be restricted to the quantity based on the normal usage during the Shelf Life period. The Inner Quantity Fences are applicable for both seasonal and non-seasonal items. One Inner Quantity Fence is arrived at based on the number of periods entered by the user for this Fence. For items which are controlled by Line Point (Product Line Items), another Inner Quantity Fence is used to increase the order quantity to the normal usage during the review period. Procedure From the menu, enter "COQ":

After entering the selection options, determine whether or not to use global order cost and carrying cost.

Y Select to use ordering cost and carrying cost as entered on the screen to calculate E.O.Q. for all items.

N Select to use ordering and carrying costs as available in the database corresponding to

each individual item's branch data to calculate E.O.Q.




Select the processing options:


2 Select to recompute values, print the comparative report and optionally update the

database with the newly computed values. After determining if items should be printed where the computed value equals existing value the user must indicate if the exception report is to be printed as follows:

Y Select to print a report giving exceptions in the data held in the database which caused the computation to be skipped for a specific item.

N Select if a printed exception report is not needed.



CMIN- COMPUTE MINIMUM LEVEL Introduction The Compute Minimum Level program serves the purpose of computing the minimum level for each item at each branch in which the item is stocked. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions: • Value of freeze Indicator is N • Item is active • Auto Reorder Code is 1 • Item status is not 3 or 4 Update of Item Branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. Procedure From the menu, enter "CMIN":

Select the compute option:

1 Select to compute the minimum level based on average usage and lead time, with an added safety allowance.

Minimum Level = Average Usage * Lead Time + Safety Allowance

1 Select to compute the minimum level based on the daily usage rate and a factor by which to multiply to daily usage rate to arrive at the minimum level.



Minimum Level = Daily Usage Rate * Multiplication Factor

2 Select to compute the minimum level based on the daily usage rate and a factor by which to multiply the daily usage rate with an added safety allowance based on a percentage factor.

Minimum Level = (Daily Usage Rate * Multiplication Factor) * (1 + Percentage Safety Factor entered/100) Select the processing and sort options:

Select the processing option as follows:






CMAX- COMPUTE MAXIMUM LEVEL Introduction The Compute Maximum Level program serves the purpose of computing the maximum level for each item at each branch in which the item is stocked. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• Value of freeze Indicator is N • Item is active • Auto Reorder Code is 1 • Item status is not 3 or 4

Update of Item Branch records with the computed values will only be possible if the Output is sent to Printer, Hold File or CRON. Procedure From the menu, enter "CMAX":

Select the compute option:

Select to compute the maximum level for each item on the basis of annual turnover target for the each item movement class. The turnover targets are stored in the ACF file in option keys 'inv026a' through 'inv026m'. The system uses the following formula for computing the maximum level for each item at the concerned branch

Maximum = ( 365 * Usage per day) + Minimum Turnover Target



1 Select to compute the maximum level based on the average usage of item per period and then number of periods to be considered.

Maximum = Average Usage per Period * Number of Periods

2 Select to compute the maximum level based on the minimum level and a factor by which to multiply the minimum level to arrive at the maximum level.

Maximum = Minimum * Multiplication Factor Enter the turnover target for the item movement class. This figure will be used to compute the maximum level for each item.


Select the processing option as follows:




2 Select to recompute values, print the comparative report and optionally update the database with the newly computed values.



ICSL- COMPUTE SURPLUS LEVEL Introduction This Compute Surplus Level program computes the surplus level for each item at each branch. The surplus level defines the level above which stock at a branch is considered to be surplus. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:


Update of item branch records with the computed values will only be possible if the output is sent to Printer, Hold File or CRON. The method used to compute the surplus level for an item at a branch is dependent upon the Authorized Replenishment Path (ARP) Code for the given item at that branch. For items with ARP Code = 1, (ie. Bought from a Vendor) If the Line Point is not zero, Surplus Level = Line Point + Order Quantity If the Line Point for an item is zero, Surplus Level = Order Point + Order Quantity For items with ARP Code = 2 , (ie. Transferred from another Branch) Surplus Level = Maximum Level Procedure From the menu, enter "ICSL":










IMC- ITEM MOVEMENT CLASS Introduction The Item Movement Class program allows the user to rank items by IMC code. The user may set the levels at which the break for IMC items should occur. The report will rank items in order from most valuable to least valuable. The old IMC code will print as well as the new IMC code as of this run. If the output is directed to the printer or hold file, the program can automatically update the item or branch file with the new IMC code. Procedure From the menu, enter "IMC":

Select from the following options: SELECT OPTION

Select 1 to carry out the IMC Analysis based on information held in the item master. Select 2 to carry out the IMC Analysis based on information held in the item branch master.

PRODUCT GROUP

Enter the product group search criteria.

CALCULATE IMC BASED ON

Select 1 to allocate IMC codes based on unit cost per item multiplied by the past annual usage. Select 2 to allocate IMC codes based on unit cost per item multiplied by the current quantity on hand. Select 3 to allocate IMC codes based on unit cost per item multiplied by past annual sales.



If the user selects either 1 or 3, a window will open to enter the periods to be analyzed.

_________________________________________________

CLASSIFY IMC BASED ON

Select 1 to carry out the IMC analysis on the basis of percentages of total extended value. Example: If the break percentage for IMC code 1 is 7.5%, the items will first be arranged in order of descending extended value. All items up to 7.5% of the total extended value will then be classified as IMC code1. Select 2 to carry out the IMC analysis on the basis of percentages of the total number or count of items. Example: If the break percentage for IMC code 1 is 7.5%, the items will first be arranged in order of descending extended value and all items up to 7.5% of the total number of items, by count, will be classified as IMC code 1.

INCLUDE ZERO BALANCE ITEMS

Select Y to include items with an on-hand quantity of 0 in the IMC analysis. Select N if items with an on-hand quantity of 0 are not to be included in the IMC analysis.

INCLUDE NEGATIVE BALANCE ITEMS

Select Y to include items with a negative on-hand balance in the IMC analysis. Select N if items with a negative on-hand balance are not to be included in the IMC analysis.

MINIMUM SALE/USAGE VALUE

Enter the minimum extended sale or usage value for an item to be included in the IMC Analysis. All items with extended sale or usage value below the entered minimum value will be classified automatically as IMC code 13 and will be excluded for further analysis.

COST METHOD

Select 1 to base the IMC Analysis calculations on the last cost of individual items. Select 2 to base the IMC Analysis calculations on the average cost of individual items. Select 3 to base the IMC Analysis calculations on the standard cost of individual items. Select 4 to base the IMC Analysis calculations on the branch cost of individual items



at the respective branches.

After these entries have been made, the IMC Classification Break Levels screen will appear.

Enter the break level percentage for the current IMC code. This must be greater than the starting percentage for this code. PROMPT: Are the break levels correct: (Y/N) PROMPT: Output to (S)creen, (P)rinter or (H)old for view or (E)xit



CIT- COMPUTE ITEM TURNOVER RATE Introduction This program offers algorithms to calculate the inventory turn rate for stock items by either branch, vendor, product line, product group or item. Non-stock item sales and cost of goods are excluded from these algorithms. In order to properly calculate the turn rate, the following programs need to be run prior to this program in a timely fashion: GAIV

Gather Average Inventory Value This program should be run at least once per inventory period. This may be set up as a cron to run automatically. It will store the average value of each item in each branch for stock items. This program may run as frequently as desired in a period. The goal is to have an average inventory for each period.

GIS

Gather Sales, Cost of Goods for Stock Items Gather Cost of Goods for Transfers This program should be run at any time and will gather S/A detail data for sales from stock items. Program gathers sales and COGS for IN, CM, DA and CA transaction types. Program also gathers separately COGS for transfers, transaction types TI or TC.

Assuming these gather programs have been run user may run this program to compute the turn rates. Turns are calculated as follows: TURNS = Total Cost of Goods From Stock + Total Cost of Goods For Transfers Average Inventory Value Report run time options allow user to define the inventory periods for which to calculate the turn rate.



Procedure From the menu, enter "CIT":



CITE- COMPUTE ITEM TURN & EARN RATE Introduction This program offers algorithms to calculate the inventory turn & earn rate for stock items by either branch, vendor, product line, product group or item. Non-stock item sales and cost of goods are excluded from these algorithms. In order to properly calculate the turn & earn rate, the following programs need to be run prior to this program in a timely fashion: GAIV

Gather Average Inventory Value. This program should be run at least once per inventory period. This may be set up as a cron to run automatically. It will store the average value of each item in each branch for stock items. This program may run as frequently as desired in a period. The goal is to have an average inventory for each period.

GIS

Gather Sales, Cost of Goods for Stock Items Gather Cost of Goods for Transfers This program should be run at any time and will gather S/A detail data for sales from stock items. Program gathers Sales and COGS for IN, CM, DA and CA transaction types. Program also gathers separately COGS for transfers, transaction types TI or TC.

Assuming these gather programs have been run user may run this program to compute the turn rates. Turns & Earn Rates are calculated as follows: TURNS & EARN = TURNS RATE * Gross Margin Return On Investment (GMROI) Report run time options allow user to define the inventory periods for which to calculate the turn & earn rate.



Procedure From the menu, enter "CITE":



CIG- COMPUTE ITEM GROSS MARGIN RETURN ON INVESTMENT (GMROI) Introduction This program offers algorithms to calculate the inventory GMROI rate for stock items by either branch, vendor, product line, product group or item. Non-stock item sales and cost of goods are excluded from these algorithms. In order to properly calculate the GMROI rate, the following programs need to be run prior to this program in a timely fashion: GAIV

Gather Average Inventory Value This program should be run at least once per inventory period. This may be set up as a cron to run automatically. It will store the average value of each item in each branch for stock items. This program may run as frequently as desired in a period. The goal is to have an average inventory for each period.

GIS

Gather Sales, Cost of Goods for Stock Items Gather Cost of Goods for Transfers This program should be run at any time and will gather S/A detail data for sales from stock items. Program gathers Sales and COGS for IN, CM, DA and CA transaction types. Program also gathers separately COGS for transfers, transaction types TI or TC.

Assuming these gather programs have been run user may run this program to compute the turn rates. GMROI is calculated as follows: GMROI = Sales From Stock - Cost of Goods From Stock Average Inventory Value Report run time options allow the user to define the inventory periods for which to calculate the GMROI rate.



Procedure From the menu, enter "CIG":



PROCESSING PROGRAMS GENERATING REQUISITIONS Now that you have determined what items are going to be a part of the Automated Replenishment process and have determined the proper usage, lead times, order points, etc by either executing the various calculation programs through cron jobs or entering the information manually, it is now time to figure out what to order, how much to order. This is accomplished by running the Purchase Requisition Generator program (PRGEN). PURCHASE ORDER REQUISITION PROGRAM - PRGEN The purpose of the Generate Purchase Requisitions program is to scan the item branch inventory status, identifying items which need to be reordered and to generate purchase requisitions. The program can optionally print the Recommended Replenishment Action Report. Suggested requisitions are created into a pending state. The user must approve or reject requisitions or it will remain in a pending state. Procedure From the menu, enter "PRGEN": Select Purchase Requisitions Only, Branch Transfer Requisitions Only or Both.

If you selected Option 2- (Branch Transfer Requisitions Only) or Option 3- (Both option), the "Auto-create Sales Order for all transfer requisitions", question will become active. Choose whether or not you want this to occur by clicking on the check box. Choose whether or not you want to Create Non-Stock Requisitions and/or Drop Ship Requisitions by clicking on the check box.



Enter the selection criteria and processing option:

The following fields may be entered: BRANCH

Enter the Branch selection criteria. Enter * to process all branches. This field may not be left blank.

PRODUCT LINE

Enter the search criteria for product line.

Enter the selection criteria or click on the "OK" button to search all requisitions for the branch. Select the processing option:

1. To create supplementary requisitions. This option will take into account all earlier purchase requisitions for the same item at the corresponding branch and generate a new requisition for the net requirement.

2. Select this option to re-compute purchase requisitions. This option will delete all earlier purchase requisitions found with a status code of 1 (Pending) or 2 (Approved) for the same item at the corresponding branch. (Only Requisitions previously generated through the PRGEN program will be deleted. Requisitions added through other programs will not be deleted but will be taken into account while arriving at the Total Available qty for the Item)



The next window will appear:

Enter the percentage of PO target above which a Line Buy is recommended. Whenever an item, which is part of a Product Line is reviewed, the PRGEN also carries out a review of the entire Product Line in order to determine if a Line Buy can be recommended. Review of a Product Line involves the selection of all items forming part of the Product Line whose available quantity is at or below their respective Line Points. The PRGEN program computes the sum of the order quantity of all selected items of the Product Line and compares the total against the PO target for the Product Line. (If the PO Target is expressed by Value, Weight or Volume, the program will convert the order quantity to the corresponding unit). If the computed sum as a percentage of the PO Target is less than the percentage given in this option, the PRGEN program will not recommend a Line Buy. When a Line Buy is not recommended, only items whose available quantity is at or below Order Point will be considered for replenishment. When the computed sum as a percentage of the PO Target for the Product Line is above the user specified percentage, but below 100%, the program will increase the order quantities of all selected items proportionately in order to achieve the PO Target. While doing this, if the quantity to be ordered for any of the items exceeds an Order Quantity Fence for the item, the quantity to be ordered will be restricted to the Fence quantity. Enter the processing option:

0- To process only items which demand immediate action. Demand Action Items are those which require immediate action. In the case of items purchased from a vendor, these are items whose available qty is at or below Order Point. In the case of Items transferred from another branch, Demand Action Items are those whose available qty is at or below Order Point This option will not include Line Buy items.

1- To process only items which demand immediate action. Demand Action Items are

those which require immediate action. In the case of items purchased from a vendor, these are items whose available qty is at or below Minimum Level. In the case of Items transferred from another branch, Demand Action Items are those whose available qty is at or below minimum Level. This option will not include Line Buy items.

2- To process Demand Action and Recommended Action Items. Recommended

Action Items are those which have still not reached the critical point but are



recommended for replenishment based on factors such as the advantage of obtaining Line Buy discounts.

. Enter the order quantity fencing parameters:

Order Quantity Fencing Parameters: MAXIMUM TIME NON-SEASONAL ITEMS

Enter the Number of Periods to be used to arrive at an Outer Fence for Order Quantity for Seasonal Items. The Number of Periods entered will be multiplied by the Average Usage per Period to arrive at an Outer Fence Quantity for each Seasonal Item. When the computed Order Quantity for the Item exceeds the Outer Fence Quantity, the Order Quantity will be restricted to the value of the Outer Fence Quantity.

MAXIMUM TIME SEASONAL ITEMS

Enter the Number of Periods to be used to arrive at an Outer Fence for Order Quantity for Seasonal Items. The Number of Periods entered will be multiplied by the Average Usage per Period to arrive at an Outer Fence Quantity for each Seasonal Item. When the computed Order Quantity for the Item exceeds the Outer Fence Quantity, the Order Quantity will be restricted to the value of the Outer Fence Quantity.

INCLUDE CURRENT PERIOD'S USAGE OF LAST YEAR?

This option provides the ability to either include or exclude the Usage History of the period in the last year corresponding to the Current Period. This option pertains to the computation for seasonal items where the Usage History of the corresponding periods of last year are used to arrive at an Outer Quantity Fence. Y -to include the Usage History of the period in last year corresponding to the current period. N - to exclude the Usage History of the period in last year corresponding to the current period.



INCLUDE SEASONAL ITEMS

This option provides the ability to either include or exclude items that are Coded as seasonal items from the computation in PRGEN. Y - to include seasonal items in the PRGEN computation. N - to exclude seasonal items in the PRGEN computation.

Indicate the report types:

Enter the Vendor Items Report Options and Sort Options:

Similar report and sort option window will appear for the other report types. When all report and sort options have been selected the system will inquire if the the report is to be printed after processing. If N is selected the user must indicate if it should (G)enerate the processing now or (C)ron specify a Cron Job for the processing. If G is selected the terminal will be locked during the process. If C is selected the system will put the user in the CRONM program.



Cron Job Table Maintenance window:

The (C)ron Job permits the production of a report on an output device at a previously selected date and time. This type of output operation is often used to produce reports automatically unattended. A detailed explanation of the cron fields may be reviewed in the System Utilities section under a program called CRONM. Flexible and moving date parameters can be established when the output is generated if the user specifies that the output is not variable, the report will use the fixed aging date for the output. If user specifies that the date parameters are variable, the output will be based on the start date of the report. The start date will be a calculated date based on the system date. Output will take the system date at the time the output is generated and add days (plus or minus) to the system date to arrive at the start date. This start date is then utilized as the aging date. In addition to automatic cron scheduling of user-specified reports in background processing, CRONM also allows the user to actually create a program record for a particular cron job. A program record is normally maintained in the PGC program where records created allow for defining what programs may be run directly from the menu. These features are setup through additional windows after this initial window is completed. SEE CRONM for detailed instructions on setting up crons.



PURCHASE ORDER REQUISITION PROGRAM - PRGEN - TRANSFERS In this procedure the system will automatically create a purchase requisition for all items that are required to bring the stock level up to the maximum level and to fill demand. Demand orders are open sales orders where there is in-sufficient stock to fill the order. The program used to create these Branch Transfer requisitions for the receiving branch is Generate Purchase Requisitions (PRGEN). This option should be used when replenishing one branch's stock from another branch based upon the receiving branch min and max and surplus levels. In order for this procedure to work correctly, ACF options inv054 and inv055 must set up. The setting up of these options will determine how much stock you will allow to be transferred from one branch to another. The choices are yours to make. Procedure

1: The person running this option has the choice of running it for just Branch Transfers or for all types of purchases. To run it for Branch transfers select option "2" and answer yes (Y) for auto-creation of sales order at the time of PO generation. You will then need to choose if this option should be run for Non-Stock and Drop Ship items.

PRGEN SCREEN 1

2: On the second screen enter your selection criteria for the items you want to transfer. You will need to enter a Branch number or an asterisk (*) for all Branches. Then you must select the processing option. This is your choice. If you choose option 1 the system will create new requisitions for demand and replenishment and will not do anything to the requisitions that were already created. If you choose option 2 the system will remove all prior requisitions and create new ones for the entire quantity required.



PRGEN SCREEN 2

3: On third screen you must enter the processing option you want the system to use in calculating the buy quantity. The choices are "1" for demand Action Item Only, "2" for Demand and Recommended Action items. If you choose option "2" you must enter a Branch number or an asterisk (*) for all Branches. If you choose option 1 you will only get requisitions for open sales orders where there is in-sufficient stock to fill them. If you choose option 2 you will get requisitions for both demand and stock replenishment terms.



PRGEN SCREEN 3

4: On the fourth screen you can change the Inner and Outer fences that are used in calculating the recommended buy quantity. In most cases you should take the default settings. For more information on how Inner and Outer fences work refer to the Gordon Graham Distribution Inventory Management book or the Help screen.

PRGEN SCREEN 4

5: On the fifth screen is where you will select the parameters for your own reports. Here you can

define the information you want to see on the reports.



PRGEN SCREEN 5

6: The system will then process all the items selected and create purchase reqs. for all the terms

that you will need to buy.



PRGEN SCREEN 6

7: If you need to modify one of the requisitions, you would do so using the UPDATE option in the Purchase Requisition Maintenance (REQM) program.

8: All purchase requisitions must be approved before they can be converted into PO's. The

Approve Purchase Order Requisitions (APR) program is the one you would use to approve your requisitions. There are three options to choose from: Option 1 will approve all pending requisitions automatically at one time. Option 2 allows you to review each requisition one at a time and approve only the ones you want to. Option 3 will allows you to flag requisitions which should not be approved at this time and approve all others at one time.

APR



9: Now select program Generate Purchase Orders (POGEN) which will generate both PO's and

Sales orders for all Branch Transfer reqs. that were approved. There are three options to choose from. Option 1 will only create PO's for approved requisitions on items being purchased from a vendor. Option 2 will create both transfer PO's and transfer sales orders for items being replenished by Branch Transfers. Option 3 will perform both options 1 and 2.

POGEN SCREEN 1

10: On the second screen you enter your selection criteria. You must enter a Branch Number or an asterisk (*) for all Branches.

POGEN SCREEN 2

11: On the third screen you need to select two grouping options. Select Branch Grouping option "1" to group within the same branch. If you are using product line codes you need to select Product Line Grouping option "1" to group within the Product Line. It also gives you your starting PO # and allows you to print a report after all PO's are created.



POGEN SCREEN 3

12: The system will now create a PO for the receiving Branch and a Sales Order for the shipping branch for all the items selected automatically.

13: Once these orders are created the tracking of inventory and the POR receiving functions are

exactly the same procedure as Manual procedure.



SEASONAL ITEMS PROCESSING INTRODUCTION AND OVERVIEW While it’s important to have enough items in inventory to satisfy demands, you want to avoid overstocking. This is especially important for seasonal items that no one wants after the season is over. Products may lose value or quality by remaining in your warehouse and just sitting on your shelves waiting to be sold when the next season arrives. It is important to note the more inventory you have, the more money you spend on overhead costs, loans, insurance, and other expenses. The software you have purchased, coupled with the Automatic Replenishment Portion of your system, will assist you by providing the necessary tools to control seasonality by allowing you to determine what products are seasonal, by recommending quantities to purchase and by generating purchase requisitions. Seasonal items may be set up as having a single season, or may be set up to have two seasons within a twelve month period. There are two methods used to determine and setup seasonal items: manually or letting the system automatically analyze past sales history. You may wish to have some seasonal items determined by the system and others you may choose to set up manually. DETERMINING SEASONAL ITEMS To manually set up seasonal items – The user would setup the item as a seasonal item in the program IPMB, using screen 4. The following fields would have to be setup.

• Field # 92 Trend %: Indicates the percentage of growth or decline in business of that Item. This Trend % will be used in calculating the item Order Quantity (COQ).

• Field # 93 Seasonal Indicator: Enter 'SS' if the Item is seasonal and has a single season. Enter 'TS' if the Item is seasonal and has two seasons.

• Enter 'OT' if the Item is a One-Time Purchase Item. • Field # 94 May be Seasonal: Enter “Y” if the item exhibits seasonal behavior. • Enter.” N “ if the item does not exhibit seasonal behavior. • Field #’s 95 to 98: If the item is a single season item the starting and ending dates for both the

selling and buying periods need to be entered. • Field #’s 99 to 102: If the item is being setup as a two season item, the starting and ending dates

for BOTH the selling and buying periods needs to be entered. To automatically set up seasonal items – The user would execute the program ISI (Identify Seasonal Items). This program serves the purpose of analyzing the usage history of items in order to identify items with seasonal behavior. Apart from the selection criteria provided by the user, this program will only select items which satisfy the following conditions:

• IPMB field # 66. (Item Active) must be set to ‘Y’ • IPMB field 61 (freeze Indicator) must be set to ‘N’. • IPMB field 93 (seasonal indicator) must be blank • IM field 15 (item status) must be set to ‘1’ or ‘2’

The program uses the following details provided by the user to identify seasonal behavior:

• Number of consecutive periods to analyze for identifying seasonal behavior • Percentage of annual activity to qualify for seasonal behavior • Minimum number of periods item must have been stocked • Minimum annual usage

The program will look at the past 12 months and determine if an item had 80 % of its activity in the last 6 months. If an item meets these conditions, then it would qualify as a seasonal item. The program will exclude all items which have been stocked for less than the specified minimum number of periods,



including those items whose annual usage falls below the specified minimum level. For example if you enter 6 in the Minimum Annual Usage field and the item only had an annual usage of 5 during the 12-month period, this item would be not be analyzed. If processing option 2 is selected - (report and update) in ISI, the program will update the seasonal field in IPMB field #94 to a “Y”. * We recommend that a thorough review of these items be done to determine if they should be coded as seasonal items. The user would then have to enter both the start and end dates of the seasonal selling and buying periods. COMPUTING THE RECOMMEND QUANTITIES TO BUY FOR SEASONAL ITEMS If you are using the auto replenishment feature of the system, you probably already have the following programs running on your system. These programs are usually setup as cron jobs and run once a month, to compute controls that are needed for the Automated Replenishment Process. The following describe how these programs handle an item that is set up to be seasonal. CIAU - calculate item average usage. The system will go backwards by one year and consider the Usage History of the periods of the last year, which correspond to the periods immediately ahead of the current period. CILT – calculate item lead-time. The calculation is the same for both seasonal and non-seasonal items. CSAFE – calculate safety allowance. The calculation is the same for both seasonal and non-seasonal items. COP - calculate order point. The calculation is the same for both seasonal and non-seasonal items. COQ - calculate order quantity. The COQ for seasonal items is calculated using the following computation: For items with Seasonal Indicator of “SS” the order quantity is computed as the sum of the Usage of the item in corresponding ‘X’ periods from the last year where the value of ‘X’ is specified by the user. The sum of the Usage is multiplied by the Trend % (field 92 in IPMB) to account for the growth or decline in business for the item. PURCHASING SEASONAL ITEMS There are two programs that should be used to determine what seasonal items need to be replenished. If seasonal items are set up as “SS” (Single Season) then the Generate Purchase Requisitions (PRGEN) program is used. If seasonal items are set up as “TS” (Two Season) then the Seasonal Items Replenishment Alert Report (SIRA) program is used. PRGEN- PURCHSE REQUISITIONS GENERATION FOR SEASONAL ITEMS This program is used to create purchase requisitions for both non-seasonal items and seasonal items that are coded as “SS” single season. The first three screens have nothing to do with seasonal items. On screen four (4) there are some fields that are critical for creating seasonal item requisitions. “Order Qty. Maximum Time Fence- Seasonal Items” This is used to determine the Outer Fence for seasonal items. The number of periods entered here will be multiplied by the Average Usage per period



to arrive at this Outer Fence Quantity. When the computed Order Quantity for the Item exceeds the Outer Fence Quantity, the Order Quantity will be restricted to the value of the Outer Fence Quantity. It places a cap on the quantity you can order so that you don’t purchase more than you need. “Include Current Period’s Usage of Last Year?” This option provides the ability to either include or exclude the Item Usage History of the period in the last year corresponding to the Current Period. This option also pertains to the computation for seasonal items where the Item Usage History records of the corresponding periods of last year are used to arrive at the Outer Fence Quantity. “Include Seasonal Items?” Must be a “Y” if you want to create purchase requisitions for seasonal items. The program will look at field 93 (seasonal indicator) in IPMB to see which items are coded as seasonal items and have an “SS” - single season. The program will then check fields 97 & 101 (start buying period), and fields 98 & 102 (end buying period). If the date that PRGEN is being run on falls within the start and end buying periods the program will do its calculations and create a purchase requisition for each item. The program will look at the item on hand qty and see if it fell to the order point and it will create a purchase requisition for the Order Qty. The program will also utilize all the other filters that the automatic replenishment process (i.e. minimum PO qty, qty per pack and shelf life) uses. SIRA - This program is used to alert the buyer on what seasonal items they need to buy that are coded as “OT”- (one time buy) or “TS” (two season items). The program will use the starting and ending purchasing periods that are stored on screen 4 in program IPMB. The buyer would review this report and enter purchase orders for items they need to buy. The process for converting seasonal purchase requisitions into purchase orders is the same as non-seasonal requisitions. You need to approve the requisitions and then convert them to purchase orders by using either POGEN or PORM programs.



SIRA- SEASONAL ITEM REPL. ALERT REPORT Introduction This program serves the purpose of generating a Replenishment Alert Report to prompt for purchase action on One-Time Purchase and Two Season Items. (Seasonal indicators OT and TS) Apart from the selection criteria provided by the user, this program will only select items where the Item is active and the item status must be a 1 or 2 (NOT 3 or 4) The program uses the information regarding the start and end periods for purchasing for these items to raise an alert for the buyer. Procedure From the menu, enter "SIRA":

Enter the sort options:



MISC. PROGRAMS, REPORTS AND QUERIES IUTF- UNFREEZE TEMPORARILY FROZEN ITEMS Introduction This program serves the purpose of removing the freeze condition on all temporarily frozen Items whose freeze period has expired. The program determines whether an Item's freeze period has expired by using the Freeze Date and the Freeze Period (in days). If the current terminal date is later than the date up to which the item had been frozen, the program will remove the freeze condition on the item. Procedure From the menu, enter "IUTF":

Enter the processing date and then select the Processing Option:

To print temporarily frozen items whose freeze period has expired. To print temporarily frozen items whose freeze period has expired and optionally unfreeze such items.

Enter the Sort By Options: Enter the Output Options:

Output to (S)creen, (P)rinter, (H)old File, (C)ron or (E)xit:



IFIR- ITEM FREEZE INDICATOR REPORT Introduction The IFIR (Item Freeze Indicator Report) report serves the purpose of generating a report on all frozen items. The program has the capability to separately report on the following:

• Items frozen ON or AFTER a given date • Items frozen ON or BEFORE a given date • Items frozen for lead time variance • Items frozen manually for a temporary period • Items frozen manually for an indefinite period (permanent freeze)

The reason for the freeze, the actual usage and the override usage for the item are also printed in the report. Procedure From the menu, enter "IFIR":

PROMPT: Print Replenishment Controls? (Y/N)

Enter Y to print the item replenishment controls such as order point, order quantity, line point, etc.



Enter the report and sort options:



ICUT- ITEM CONTROLS AND USAGE QUERY Introduction The purpose of the Item Controls and Usage Query program is to provide a multi screen look into Branch and Controls Information, Inventory Usage Review Information and Inventory Transaction Review Information. Procedure From the menu, enter "ICUT":



Inventory Usage Review:

Inventory Transaction Review:



MOIH- MOVE OLD ITEM HISTORY TO NEW ITEM Introduction The purpose of this program is to move either standard item usage/sales history or standard sales analysis history from one item to another item. The program will check the alternate to stock conversion field prior to proceeding with the movement of history. If the stock conversion factors are different between the old and new items the program will display an error message and not proceed. This will prevent the inventory data from being corrupted. Procedure From the menu, enter "MOIH":

The following fields may be entered: REPLACE ITEM FROM

Enter the Item ID which history is to be transferred from.

REPLACE ITEM TO

Enter the Item ID which history is to be transferred to.

BRANCH

Enter search criteria for Branch or * for all branches.

DIVISION

Enter search criteria for Division.

Documents

jason2.jasonindustrial.com · Next Generation ® Automated Replenishment Release NGS-6.40 ARP - 2 SEASONAL ITEMS PROCESSING