Related topics
There are three types of inventory control codes and three corresponding programs used in the DC1 Inventory Control system. They are:
- Forecast control codes
- Replenishment control codes
- Service control codes
In this program you define the inventory control codes for calculating economic order quantity (EOQ). EOQ is used to determine the ideal quantity to purchase, each time you purchase. The purpose is to give you the flexibility to define several different methods for calculating EOQ, for different segments of stock, according to different classes and different keys within those classes. In addition, you can assign methods on warehouse level or on company level.
Options
| Select | Select this option to work with key values in order to define the inventory control codes for calculating EOQ. |
- Control key class
- This column lists the existing control key classes for which you can define EOQ methods. You can only select one at a time.
The Nickname class allows you to define EOQ methods which do not have to be assigned to a specific key within the system. The nickname is an arbitrary name. When you installed DC1 Inventory Control, a common EOQ method and its’ corresponding values were automatically set for the default class. However, you can maintain these values. Select the Default class if you want to maintain the EOQ method for the default class.
- Short code
- This column lists the short codes of the existing control key classes.
Work with replenishment control codes (INVD01104)
In this section you define the inventory control codes for calculating economic order quantity (EOQ). EOQ is used to determine the ideal quantity to purchase, each time you purchase. The purpose is to give you the flexibility to define several different methods for calculating EOQ, for different segments of stock, according to different classes and different keys within those classes. In addition, you can assign methods on warehouse level or on company level.
Options
Selection fields
- Control key class
- Displays the selected control key class for which you want to define an EOQ calculation method.
- Whs
- This column lists the warehouses for which an EOQ calculation method has been defined at warehouse level. If a warehouse code is not entered, then the EOQ calculation method is used at company level.
- Key value
- This column lists the key values entered for the selected control key class. For example, if the control key class is *ITM (item), then valid item codes are listed.
- Wilson
- Indicates if the Wilson method should be used to calculate EOQ for this control key class, warehouse and key value.
- Period dependent
- Indicates if the Period dependent method should be used to calculate EOQ for this control key class, warehouse and key value.
- Demand control
- Indicates if the Demand control method should be used to calculate EOQ for this control key class, warehouse and key value.
- Order cost
- If the Wilson method or Period dependent method is selected, then the amount is shown in system currency of the order handling costs associated with placing an order.
- Stock interest
- If the Wilson method or Period dependent method is selected, then the stock interest amount is shown reflecting the return on investment the company would receive if their capital was not tied up in inventory.
- No of months demand
- Displays the number of future months demand that you want to use as an EOQ.
- Maximum months
- Optional entry, but can be used for both the Wilson method and the Period dependant method. Enter the maximum number of future months demand that you want to cover with one purchase. The amount you enter must be greater than the amount in the Minimum months field.
- Minimum months
- Displays the minimum number of future months demand that you want to cover with one purchase. The calculated EOQ is checked against this value.
- Maximum deviation %
- Displays a percentage value for the allowed maximum deviation between the present period EOQ value and the previous period EOQ. This value is used to determine if an EOQ error has occurred during calculation of EOQ. If a value is not entered, then the system cannot alert the user to deviations in EOQ.
Work with replenishment control codes (INVD01107)
On this panel, you can add, change or delete entries for this control key class. For each warehouse and key value you define, you must select the method, and establish the parameters that you want to use to calculate EOQ for the selected control key class.
Note: You are not allowed to delete the *DFT key value.
Function keys
- Control key class
- Displays the selected control key class for which you want to define EOQ calculation methods.
- Warehouse
- Key value
- Mandatory entry. Enter a key value. For each warehouse and key value in this control key class, you define a method and the parameters to be used for calculating EOQ.
- Description
Select method
Select the method you will use to calculate EOQ for this control key class, warehouse and key value. The three methods that you can choose from are listed below. You can only choose one method.
- Wilson
- Indicate if you want to use the Wilson method to calculate EOQ for this control key class, warehouse and key value.
- Period dependent
- Indicate if you want to use the Period dependent method to calculate EOQ for this control key class, warehouse and key value.
- Demand control
- Indicate if you want to use the Demand control method to calculate EOQ for this control key class, warehouse and key value.
Enter parameters
Enter the parameters needed to calculate EOQ according to the method chosen above. You are required to complete certain fields below, depending on which EOQ method you select.
- Order cost
- Mandatory entry if the Wilson method or Period dependent method is selected. Enter the amount in system currency of the order handling costs associated with placing an order.
- Stock interest
- Mandatory entry if the Wilson method or Period dependent method is selected. Enter the stock interest amount reflecting the return on investment the company would receive if their capital was not tied up in inventory.
- No of months demand
- Mandatory entry if the Demand control method is selected. Enter the number of future months demand that you want to use as an EOQ.
- Minimum months
- Optional entry, but can be used for both the Wilson method and the Period dependant method. Enter the minimum number of future months demand that you want to cover with one purchase. The calculated EOQ is checked against this value.
- Maximum months
- Optional entry, but can be used for both the Wilson method and the Period dependant method. Enter the maximum number of future months demand that you want to cover with one purchase. The amount you enter must be greater than the amount in the Minimum months field.
- Maximum deviation %
- Enter a percentage value for the allowed maximum deviation between the present period EOQ value and the previous period EOQ. This value is used to determine if an EOQ error has occurred during calculation of EOQ. This field is optional. However, if you do not enter a value here, the system has no way to alert you to deviations in EOQ.
Work with replenishment control codes, Copy (INVD01108)
- Control key class
- Displays the selected control key class with which you are working.
- Whs
- Displays the warehouse code(s), if defined for the key value(s) you selected to copy.
- Key value
- Displays the selected key value(s).
- New whs
- Enter a code to identify the new warehouse for which you are entering new key values.
- New key value
- Enter the new key value.